Kuwait Investing $26 Bn To Raise Output To 4M b/d.

The Chairman and Managing Director of the state-owned Kuwait Oil Co (KOC) Farouq H. al-Zanki says: "We have a strategy [for] 2004-2020 to increase our oil production to four million b/d. We anticipate to spend $26 bn over the next 20 years for drilling and enhanced oil recovery. Most investments will be made in the upstream sector by the company", he told reporters on the sidelines of Adipec 2006 in Abu Dhabi on Nov. 6. Kuwait currently produces some 2.5m b/d of crude oil. He said: "Cuts in output of about 100,000 b/d have supposedly started in line with OPEC's [Oct. 20] decision [from Nov. 1]". KOC's parent group, Kuwait Petroleum Corp. (KPC), aims to raise the emirate's oil production capacity to 10m b/d by 2025/30.

Zanki said Kuwait was raising gas and condensate output in phases in the north. Output will rise to 180 MCF/day by 2007 and to 600 MCF/day by 2010-11. He said: "Ultimately, based on the reserves estimates, it could go up to 1 BCF/day". KOC has substantial oil and gas reserves and needs to partner with IOCs to bring in technology. "External assistance is needed but we have cleared with outsiders that they will be bringing in only technology and cannot book reserves and they have agreed", said Zanki, adding: "The $20-30 price per barrel is gone. We must be looking at $40 a barrel or above although it could fluctuate".