Kuwait Petroleum to spend over $500bn by 2040
Kuwait Petroleum to spend over $500bn by 2040
“KPC is expected to spend $114 billion in capex over the next five years and an additional $394 billion beyond that to 2040,” Chief Executive Nizar Al-Adsani told an oil industry conference.
Kuwait’s current oil production capacity is around 3.15 million bpd. It revealed the plan to lift capacity to 4.75 million bpd early last year.
The figure would exceed the current output of Iraq and Iran, OPEC’s second and third biggest oil nations, whose production was 4.4 million and 3.8 million bpd respectively in December.
Iraq and Iran plan to raise output steeply in the coming years to compete with OPEC leader Saudi Arabia, which produces around 10 million bpd and has capacity of more than 12 million bpd.
However, Iraq and Iraq are running far behind their targets to expand output because of infrastructure constraints, red tape and, in the case of Iran, the threat of Western sanctions.
The move by Kuwait to expand capacity signals a willingness among OPEC producers to fight for market share in the long term as global oil demand rises and as the organization faces competition from Russia and two fast-emerging oil superpowers, the US and Brazil.
Al-Adsani also told the conference that KPC intended to lift domestic oil refining capacity to
2 million bpd by 2035, while ensuring maximum offtake of domestic heavy oil production and taking into consideration the need to meet local energy demand.
KPC recently began a pre-feasibility study to lift refining capacity inside Kuwait by almost 300,000 bpd, Al-Adsani said without elaborating. Capacity was estimated at 936,000 bpd in 2015, according to the US Energy Information Administration.
The company intends to expand into downstream derivative and specialty petrochemical products at facilities inside and outside the country, Al-Adsani added.
Meanwhile, non-associated natural gas production in Kuwait is to increase to 2.5 billion cubic feet per day (cfd) in 2040, from 0.5 billion cfd expected in April 2018 and 1 billion cfd by 2023, Al-Adsani said.
As part of efforts to reduce emissions of harmful gases, KPC’s future power plants will be gas-fired, although it will use renewable energy when that makes commercial sense, he added.
Davos Diary: Central Lounge — the networking hub of the universe
- My daily tactic has been to get on the shuttle from Klosters for the 20-minute trip to Davos, head straight to the Congress Hall, and shack up in the Central Lounge
- As long as you can keep hold of your table and seat for the day, you have a ringside location for the best flesh-pressing in the world
DAVOS: I am penning these lines from the networking epicenter of the universe, the veritable “ground zero” of schmoozing — the Central Lounge of the Congress Hall at the World Economic Forum annual meeting in Davos.
Although some of the bigger beasts of the annual jamboree in the snow have stayed away this year — we all miss you, Donald and Vladimir — you would not know it from the stellar crowd in this venue. Virtually everyone who is anyone in the world of business, politics and media is here.
It is a journalist’s dream. My daily tactic has been to get on the shuttle from Klosters for the 20-minute trip to Davos as early as possible, head straight to the Congress Hall, and shack up in the Central Lounge.
As long as you can keep hold of your table and seat for the day, which is not always possible given the appetite for space here, you have a ringside location for the best flesh-pressing in the world.
For some reason, the Middle East contingent loves the Central Lounge, so you can hear the familiar sounds of Arabic and watch the chance encounters, the planned bilaterals and the (sometimes) awkward confrontations that take place when Saudis, Emiratis, Qataris and Egyptians are enclosed in a small space.
From time to time, the really big hitters pass through on their way to one of the upstairs meeting rooms. These people, such as head of state Jair Bolsonaro of Brazil and global superstars including Tony Blair, bring in their train the full entourage — bodyguards, advisers and attendant media — and leave a virtual shock wave in their wake. Questions from journalists are invariably declined with a tight-lipped shake of the head.
But others are far more chatty. The rules of the Central Lounge are clear: It is Chatham House, off the record, deep background only, unless you manage to get the agreement of person with whom you are chatting to use something they said for publication. In my experience, that happens rarely.
But perhaps that is a good thing, because it puts these celebrities at their ease, and they open up in a way they never would if there was a camera or a tape-recorder in front of them.
The encounters come faster than an Alpine avalanche. Sometimes you’re talking to one eminent business leader, and you see over their shoulder another, even more interesting, personality. The etiquette is that you fake an urgent phone call and head off to the new attraction.
In the space of 30 minutes this morning, I had fascinating conversations with Hussain Sajwani, chairman of Dubai real estate group Damac, followed by Jose Silva, the relatively new CEO of Dubai’s luxury hotels group Jumeirah. Then came Essa Kazim, governor of the Dubai International Financial Center.
Around and in between these fascinating encounters, there was a clutch of Saudi ministers, the Kingdom’s award-winning film director Haifaa Al-Mansour, the leading historian of the oil industry Daniel Yergin, and many financial “masters of the universe,” as well as a veritable constellation of glamorous media people.
Davos is famed for the quality of its night-time networking — which will be the subject of a subsequent diary — but for daylight schmoozing, leave me in the Central Lounge.
Frank Kane is an award-winning business journalist based in Dubai. Twitter: @frankkanedubai