Oil

As member of OPEC, Kuwait owns about 8 per cent of the world's proven oil reserves. Its reserves of 101.5 billion barrels are expected to last more than 100 years . Currently, Kuwait produces about 2.6 million bbl/d of crude oil, with output divided about equally between shallow wells and high-pressure wells. These wells, producing up to 10,000 bbl/d each, come from the deep "Marrat" structure which runs north-south through the country and contains an estimated 20 billion barrels of oil in place. Aside from the 1.6 million bbl/d Greater Burgan field, Kuwait's other main producing fields include the northern fields of Raudhatain (380,000 bbl/d of production capacity) and Sabriya (95,000 bbl/d of production capacity); the southwestern fields of Minagish and Umm Qudayr (190,000 bbl/d); Abdali (33,000), and Ratqa (45,000 bbl/d) in the north; and Kuwait's share of the Saudi-Kuwaiti Neutral Zone (270,000 bbl/d). Overall, around two-thirds of Kuwaiti oil production comes from the southeast of the country, with about one-fifth from northern Kuwait and about one-tenth from the west.

Crude Oil Exports

In 2005, Kuwait exported the majority of its oil (over 60 percent, 1.38 million bbl/d) to Asia-Pacific countries such as Japan, India, Singapore, South Korea, Taiwan, and Thailand. Other oil exports were split between Western Europe (112,000 bbl/d) and to the United States (123,000 bbl/d). Kuwait's single export blend ("Kuwait Export") has a specific gravity of 31.4oAPI (a typical medium Mideast crude), and is considered sour with 2.52 percent sulfur content. Around 90 percent of Kuwaiti crude oil is sold on term contracts, with the price of Kuwaiti crude oil tied to Saudi Arabian Medium (for western customers) and a monthly average of Dubai and Oman crudes (for Asian buyers). In June 2006, Kuwait also announced plans to increase crude sales to India by more than 10 percent. Kuwait provided about $4.5 billion worth of crude oil and oil products to India in 2005.

Kuwait has completed major renovations of Mina al-Ahmadi, the country's main port for the export of crude oil, which was virtually destroyed during the Gulf War. Kuwait also is planning a $900 million expansion at the port in order to add storage capacity and increase export capacity in conjunction with plans for expanded oil production in coming years. Besides Mina al-Ahmadi, Kuwait has operational oil export terminals at Mina Abdullah, Shuaiba and at Mina Saud. A new terminal is planned for Bubiyan Island, which will handle increased production from northern and western Kuwait under Project Kuwait

Kuwait project ( development of north Kuwait fields )

Oil development company ( ODC ) , a subsidiary of KPC, was established on 26th September 2005 with KD 300 m capital to oversee the operations of the foreign companies which will develop and rehabilitate north Kuwait oil fields for achieving the targeted crude oil production capacity . The main objective of ODC is to engage a pre-qualified international oil consortium to undertake development of four oil fields north of Kuwait ( Kuwait project ) and to raise the production capacity of these fields to 900 thousand bpd as to serve the best interest of Kuwait and increase income in view of the increasing demand on oil by international markets . For further information visit : http://www.kpc.com.kw/