The state-owned Kuwait Oil Company (KOC) has announced the discovery of significant commercial hydrocarbon volumes at the Al-Jlaiaa offshore field, with expectations of further finds in the region. According to the Kuwait News Agency, the estimated reserves in the 74 square kilometer area comprise 800 million medium-density barrels of oil and 600 billion standard cubic feet of associated gas.
This discovery follows the announcement of the Al-Nokhatha field in July 2024, which boasts estimated reserves of 3.2 billion barrels of oil equivalent. KOC is currently conducting an extensive exploratory survey covering over 6,000 square kilometers to locate additional hydrocarbon reserves.
As OPEC‘s fifth-largest oil producer, Kuwait currently has a production capacity of 2.48 million barrels per day (bpd) and aims to increase this capacity to four million bpd by 2035. Last week, Khaled Al Sabah, Managing Director at the Kuwait Petroleum Corporation and CEO of Kuwait Oil Tanker Company, revealed plans to expand oil production capacity by up to 40 percent, despite a challenging global demand outlook and stagnant growth in recent years.
The Gulf state’s economy contracted by about 4 percent year on year in the third quarter of 2024, impacted by OPEC’s production cuts and underperformance in certain non-oil sectors. However, the Kuwait Statistical Bureau anticipates a rebound in the economy through 2025.
Read more: Kuwait to invest $300 billion in energy sector until 2040
Kuwait’s commitment to renewable energy
In April 2024, at the 14th International Forum of Renewable Energy Legislators organized by the International Renewable Energy Agency (IRENA) in Abu Dhabi, Dr. Mashan Al-Otaibi, Director General of the Kuwait Institute for Scientific Research (KISR) and leader of Kuwait’s delegation, emphasized Kuwait’s commitment to renewable energy and sustainability. He outlined plans to update renewable energy targets and improve energy efficiency, reinforcing Kuwait’s role in a zero-carbon future.
Dr. Al-Otaibi announced Kuwait’s goal to increase renewable energy production from 15 percent to 30 percent by 2030, aiming for 50 percent by 2050. These objectives align with the strategy unveiled by the Ministry of Electricity, Water, and Renewable Energy, led by Minister Salem Al-Hajraf in March, which supports Kuwait’s broader aim of developing a sustainable energy economy.
Kuwait also plans to introduce policies and incentives to manage rising energy demand, targeting a 10 percent reduction by 2030 compared to 2020 levels. Additionally, the country has launched the second and third phases of the Shagaya renewable energy project, which will add 5,000 megawatts to the national grid and implement 2,500 megawatts of energy systems.
Dr. Al-Otaibi reiterated the nation’s commitment to achieving carbon neutrality by 2060, a promise made during the COP27 conference in Sharm El-Sheikh, Egypt. Transitioning to renewable energy is expected to offer significant economic and environmental benefits, reducing reliance on oil, mitigating the impact of price fluctuations, and decreasing Kuwait’s carbon footprint.
