Energy
From The Report: Kuwait 2013
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Hydrocarbons wealth has been the central pillar of Kuwait’s economy for nearly a century, and the nation’s proven oil reserves of around 101bn barrels underwrite its future economic wellbeing. However, the supply of non-associated natural gas, which the country discovered in 2006, has fallen behind demand, as domestic electricity generation infrastructure struggles to keep pace. Still, Kuwait has many options when it comes to resolving the challenges facing its energy sector: new fields and new technologies. This chapter contains interviews with Farouq Al Zanki, Former CEO, Kuwait Petroleum Corporation; and Sara Akbar, CEO, Kuwait Energy.

Articles from this Chapter

Overview

Enhancing their approach: With demand outpacing infrastructure development, resource use is key
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Hydrocarbons wealth has been the central pillar of Kuwait’s economy for nearly a century, and proven oil reserves of around 101bn barrels underwrite the nation’s future economic wellbeing. The Kuwaiti government derives 95% of its budget from oil revenue, and the oil sector accounts for around 52% of the nation’s GDP. However, the days of easy oil in Kuwait are limited. The famous Greater Burgan area has been worked for more than 60 years and will require an increasing amount of well interventions…

Analysis

Sunshine on my shoulder: Solar projects free up hydrocarbons reserves for export
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The climatological argument for the introduction of solar technology to Kuwait has long been established: the Middle East enjoys some of the most favourable solar radiation rates in the world, particularly between March and October, and within the region Kuwait’s solar radiation peak of 8000 Wh per sq metre (Wh/m2) places it at the top of the list in terms of solar potential, followed by the UAE with a solar peak of 7300 Wh/m2. However, while the UAE has become something of a solar pioneer…

Interview

OBG talks to Farouq Al Zanki, Former CEO, Kuwait Petroleum Corporation (KPC)
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Interview:Farouq Al Zanki How can Kuwait improve the marketability of its petroleum products given increased competition from other countries in the region? FAROUQ AL ZANKI: We are not overly concerned about competition in the crude oil market as we have our own long-standing clients and a well-known accepted crude quality that has established a mark in the industry. Now and in the foreseeable future, prospects are promising. Our focus at present is to further develop relationships with long-term…

Interview

OBG talks to Sara Akbar, CEO, Kuwait Energy
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Interview:Sara Akbar In what areas will Kuwait need the help of international oil companies (IOCs) to reach the target of 4m barrels per day (bpd) by 2020? SARA AKBAR: Over the last 10 years Kuwait has built additional capacity using domestic skillsets and capabilities, which have brought current production to 3m bpd. Going forward, we face two challenges. The first is to maintain production; as fields mature, they become more difficult to manage, so sustaining the current level is a challenge.…

Analysis

Expat community: Foreign players may figure prominently in upcoming plans
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Kuwait’s oil and gas sector has been a difficult market to enter for foreign investors since the industry was nationalised, but two factors suggest that it may become easier in the future. The first is the scale of government investment that has been earmarked for it over the coming years. Nearly two-thirds of the investment spending outlined in the nation’s five-year development plan, some KD20bn ($71.4bn), has been earmarked for the oil sector. The majority of this funding is to be expended…

Analysis

Collaborative effort: Building links between academia, businesses and government
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As the technology required to extract and exploit Kuwait’s hydrocarbons reserves becomes ever more complex, the importance of establishing a well-structured national research and development programme increases. In Kuwait, two institutions in particular provide a framework for the nation’s research efforts with regard to its energy sector; the programmes of both reveal the developing nature of the nation’s energy strategy as it grapples with new challenges. RESEARCH SERVICE: The Kuwait…

Analysis

Independent effort: Public utilities may become a private sector responsibility
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The twin concepts of independent power producers (IPPs) and independent water and power projects (IWPPs) are well established in the GCC. According to the Electricity and Co-generation Regulatory Authority of Saudi Arabia, some 24,000 MW of the region’s total capacity was derived from IPP/IWPP projects in 2010 – a figure which the authority anticipates will rise to 55,000 MW by 2015. MANY ADVANTAGES: The popularity of the model rests on the advantages it offers regional governments facing…

Analysis

Taking to the water: Looking offshore in an effort to raise oil and gas production
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Increasing both oil and gas production are central elements of Kuwait’s national development strategy. The former provides the bulk of the revenue on which the nation’s economic expansion has been based while the latter provides much of the nation’s electricity. Both represent potential feedstocks for the downstream industrial processes by which Kuwait aims to diversify its economy. The ability, therefore, of Kuwait Oil Company (KOC) to meet the ambitious production targets it has set itself…