Kuwait announces its third offshore discovery as it seeks a boost in output

Kuwait Oil Company announced on Monday that it had made its third offshore find with a production capacity of over 29 million cubic feet of natural gas per day. This is a major boost for the desert nation, which has been struggling to increase output.

KOC released a statement that estimated the Jazza field to contain around 1 trillion cubic foot of gas, and more than 120 million barrels condensates. This is equivalent to approximately 350 million barrels oil equivalent.

KOC said that it is characterized by its low carbon dioxide content, and is also free of hydrogen sulfur and water.

Kuwait, a major oil producer and member of OPEC, has increased its imports to meet the surge in domestic demand for electricity, especially during summer, when air conditioners are used most.

Kuwait Petroleum Corporation (KOC), the parent company of KOC, plans to increase domestic gas production and achieve stable free gas production levels of 2 billion standard cubic feet daily by 2040.

Kuwait began exploring the offshore area as part of an investment strategy to meet the future oil demand after receiving its first offshore drill rig in mid-2022.

The two previous offshore discoveries were primarily oil.

The Noukhadha Field, which will be discovered in 2024 by the UAE, is estimated to contain 3.2 billion barrels oil equivalent.

KOC announced in January of this year its second offshore discovery, the Julaiah Field, which holds 800 million barrels and 600 billion cubic foot of associated gas.

Kuwait's oil ministry, along with CEOs of KPC & KOC, briefed Emir of Kuwait about the latest discovery Monday.

A heatwave in Kuwait forced the government to cut off electricity temporarily to certain industrial and agricultural areas. This was a sign that Kuwait is experiencing energy shortages. Reporting by Ahmed Hagagy; Writing by Muhammad Al Gebaly, Editing by Tomasz Januaryowski and Joe Bavier

(source: Reuters)