Kuwait’s oil production plans are in high demand

Kuwait plans to invest at least $ 6.1 billion over the next five years to increase production by 440 barrels per day by at least 4040 by 2040 – an average of 2.43 million BPD by 2020 – see Bright prospects. This is a fact that cannot be ruled out, but even in the face of the negative effects of its toxic relationship.

In front of it, Kuwait’s budget Brent crude oil price is expected to rise. 2022 by 2021 by 69.30 pb. According to IMF figures, the US dollar fell by 2021 to $ 68.50 by 2020 to $ 64.50. The bright prospect of changing the emirate’s recent financial crisis. In fact, the $ 6 billion + investment announcement from Kuwait Oil Company seems to have been created behind this obvious budget data, as crude oil still accounts for 90 percent of the emirate’s exports and government. Income. In particular, according to Kiok, an estimated 300 wells have been drilled in the much-anticipated South Ratka field, which is about 93 percent complete, and plans to drill 700 wells a year. .

In this context, Coke announced in February that it had supplied 31 oil refineries to various international companies at around KWD350 million ($ 1.16 billion). The largest of these 10 rigs went to the China National Petroleum Corporation (CCC), while the rest went to a mix of seven foreign companies from Oman, the United Kingdom and Egypt, as well as local Kuwaiti companies. Although CoCCO announced in September 2019 that it would at least order bakeries, the bid was postponed for internal reasons, but the financial crisis further affected Kuwait and eventually moved forward with key new oil and gas projects. In particular, South Ratka’s initial focus was to produce at least 60,000 BPD of crude oil from the field at the current stage 1. This new oil refinery is being refined with the new Alzur refinery to contribute to the production of low-sulfur local fuels and supply them to power plants in Kuwait. Available for export.

Related: Iran to increase production by 1 million BPD more than many oil fields

This product will also be added to the heavy oil produced in the Ume Nika field in northern Kuwait, which has been in operation since 2016, which is 15,000 barrels per day, and 75,000 barrels per day, ”said IOC Sultan, CEO of COOS. According to the Co. In this context, Kok is currently bidding for the construction and operation of two new geothermal apartments in order to produce 850 million cubic feet of free gas per day, and an estimated 250,000. bpd of light crude.

Despite this, according to figures released last month, Kuwait’s budget deficit increased by 175 percent to KWD10.8 billion in 2020-21 – the biggest deficit in its budget history, according to Finance Minister Khalifa Hamada. Revenues are declining (by 38.9 percent), cost increases (0.7 percent), wages and subsidies are still 73 percent of all expenditures. In response, Mohammed al-Hashl, governor of the Central Bank of Kuwait, stressed the need for “urgent economic reforms and the need for all parties, especially the executive and the legislature, to work to resolve their differences.” The central bank itself has used a number of economic stimulus measures over the past year, lowering key prices to a historic low, doubling banks’ interest rates, improving high credit limits and boosting and reducing bank lending weights, but it is not clear.

Like Kuwait, the key point is that the National Assembly is unwilling to allow additional government loans, including the approval of any international bond supply (none since 2017). Due to the lack of any meaningful financial support strategy, the Big Two international rating agency, S&P, reduced Kuwait’s key foreign exchange rate by one (A + to AA-) in July. Even with its limited capacity, the S&P has maintained its view of the country’s ‘negative’.

Related: Libya’s oil industry may be on the verge of another collapse

In fact, there has been no significant change in the approach, and therefore, for the Kuwaiti economy — and therefore for the future of oil production — since the death of former governor Sheikh Sabah al-Ahmad al-Jaber at the age of 91. Al-Sabah. His brother-in-law, Sheikh K. Nawaf al-Ahmed Ahmed al-Jaber al-Sabah, 84, has been left with no hope of resolving the crisis without the approval of the National Assembly. And comply with the demand for oil cuts in neighboring PNH.

PNA Z is currently operating as needed, but this does not mean that Saudi Arabia will not close it again without warning and for retaliatory reasons. A.D. PNI was shut down for five years after Saudi Arabia officially shut down joint ventures due to Saudi Arabia’s failure to comply with the new emissions requirements set by Saudi Arabia’s president for meteorology and environmental protection before production began in 2020. Authority ‘.

According to the August Agency, a gas explosion occurred at one of the 15 venues (in addition to producing 280,000-300,000 bpd of crude oil before the shutdown, the station also produces 125 million cubic feet of equivalent gasses per day). He spoke to the real reason, according to various sources in the oil and gas industry throughout the Middle East OilPrice.com, Saudi Arabia wanted to show its responsibility to its neighbors.

This comes after Kuwait grew exponentially for Saudi Arabia at a much lower price for Asian markets compared to Saudi Arabia. Kuwait is also increasing the difficulty of obtaining work permits for Saudi Arabia’s Chevron (SAC) to operate in the zone, and is threatening the SAC’s ability to move forward with the full-scale steam injection project, which is expected to increase the impact. More than 80,000 bpd of oil there.

By Simon Watkins for Oilprice.com

More Top Readings from Oilprice.com

Read this article at OilPrice.com

Leave a Comment