Kuwait Oil Co. in talks with US operators about developing shale gas and oil resources

By Ahmed Hagagy

KUWAIT, February 5, 2019 ( ) – Kuwait Oil Company has been in contact with some?U.S. The CEO of Kuwait Oil Company said that the company is in talks with firms such as Devon Energy and EOG about potential collaboration to develop its shale gas and oil resources.

Ahmad Al-Eidan, speaking at the Kuwait Oil & Gas Show, said that KOC "engages with some U.S. Operators to explore how their expertise could support the development Kuwait's shale-oil and shale-gas resources".

It would be the very first time Kuwait had sought to develop its "shale" oil and gas resources. This was made possible by technological advancements and reduced costs.

Al-Eidan stated that "we?have invited a number of companies to assist us with evaluating and developing our unconventional oil and gas opportunities."

He listed Devon Energy and EOG as companies KOC had been in contact with. However, it wasn't immediately clear if the discussions involved only the two firms or if other firms were also involved.

Kuwaiti Prime Minister Ahmad Abdullah al-Ahmad Al-Sabah announced at the same press conference on Tuesday, that Kuwait Petroleum Corporation (KPC) will invite "international companies" to help KOC develop its offshore oil and natural gas discoveries.

The country wants to increase its production capacity from 3 million bpd to 4 million bpd in 2035, despite only producing 2.58 million bpd as per the OPEC quota.

At this stage, the immediate priority is to establish a confidentiality framework. Al-Eidan stated that they are in the process of signing non-disclosure contracts with one or more companies.

He added, "Once these NDAs have been signed, companies can review the relevant data and we can move on to more detailed technical and business discussions." Ahmed Hagagy reported; Bernadette Baum, Jan Harvey and Bernadette Baum edited.

(source: Reuters)