Energy
From The Report: Kuwait 2017
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With about 6% of the world’s proven crude oil reserves Kuwait plays a major role in global energy markets. However, its reliance on a single commodity which is prone to significant fluctuations in value also presents challenges for the economy as a whole, and the energy sector in particular. According to estimates from the US Energy Information Administration, Kuwait’s total export revenues in 2015 were $40bn, compared to $119bn in 2012. Although the country has accumulated significant savings over the years, giving it fiscal buffers to weather lower oil prices in the short term, falling income has given greater impetus to long-term plans to boost production, increase upstream efficiency and diversify downstream industry, so that Kuwait can optimise the value of its natural resource endowment and pass on the benefits to its citizens.

This chapter contains an interview with Jamal Jaafar, CEO, Kuwait Oil Company.

Articles from this Chapter

Overview

Renewed emphasis: Exploration and diversification are creating more opportunities
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With about 6% of the world’s proven crude oil reserves and 1.34m citizens, Kuwait is a nation with a relatively small population that plays a major role in global energy markets. However, its reliance on a single commodity which is prone to significant fluctuations in value also presents challenges for the economy as a whole, and the energy sector in particular. According to estimates from the US Energy Information Administration (EIA), Kuwait’s total export revenues in 2015 were $40bn,…

Interview

Keeping up: Jamal Jaafar, CEO, Kuwait Oil Company (KOC), on developing professional skills and expanding knowledge
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Interview: Jamal Jaafar How will production cuts by the Organisation of the Petroleum Exporting Countries (OPEC) affect KOC’s investment and exploration strategy? JAMAL JAAFAR: OPEC production cuts have an impact on the immediate production of KOC, as is the case with all the oil companies of OPEC nations, but it is important that these limits do not affect our long-term strategy, our investment or our exploration because they are subject to change. Currently, Kuwait’s production stands at…

Analysis

Fair share: Citizens and the private sector become more involved in the ownership of energy facilities
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The decision to offer its citizens an opportunity to buy shares in its newest water and electricity generating plant is, in a sense, a case of transferring power to the people. The floatation of 50% of the equity of Al Zour North One, which began operating in December 2016, was always part of the plan. It is not a case of a long-established public sector body being privatised. However, with three more public-private power and water projects set to receive the green light in 2017, a fair proportion…

Analysis

Latest model: Public-private partnerships (PPPs) in the energy sector are one more branch of the country’s diversification strategy
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In 2017 Kuwaiti citizens were offered an opportunity to own a piece of history in an unprecedented stock market floatation. An initial public offering (IPO), which was due to take place by the end of 2017, was for a 50% stake in the country’s first independent water and power project (IWPP), the initial phase of Al Zour north. The IPO was required by Kuwait’s new PPP Act, Law No. 116 of 2014, which officially went into force in 2015. The legislation was designed to create a framework…

Analysis

Catch the sun: Solar power is making significant progress in cutting costs and reducing emissions
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The first green shoots of renewable energy have begun to appear in Kuwait as new solar projects come on-stream and recognise the potential to cut costs, reduce emissions and divert fuel to export markets rather than domestic consumption. In November 2016 the emir of Kuwait, Sheikh Sabah Al Ahmad Al Jaber Al Sabah, demonstrated the country’s commitment to international efforts to reduce global warming by attending the COP22 UN Conference on Climate Change in Marrakech. Four years earlier,…