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Kuwait Oil Company

Kuwait Oil Company (KOC) is an oil company headquartered in Al Ahmadi, Kuwait. It is a subsidiary of the Kuwait Petroleum Corporation (KPC), a government-owned holding company.

As of 2024, Kuwait's oil production is approximately 2.4 million barrels per day (bpd), largely in line with its OPEC+ quota, while its sustainable production capacity is estimated at 2.9 million bpd.[3][4] The country has a long-term strategic goal to increase its production capacity to 4 million bpd by 2040.[5]

Kuwait nationalized its oil industry in 1975.[6] KOC holds the sole rights to explore, produce, and develop oil and gas resources within the state of Kuwait.[7] Kuwait's oil reserves are estimated to be around 101.5 billion barrels.[8]

History

The Kuwait Oil Company Limited was established on 23 December 1934 as a joint venture between the Anglo-Persian Oil Company (now BP) and the American Gulf Oil Company (now Chevron).[9][10] The company began drilling operations in 1936.[11]

Oil was first discovered in 1938 at the Burgan field,[13] which remains one of the largest oil fields in the world. Subsequent discoveries were made in Magwa (1951), Ahmadi (1952), Raudhatain (1955), Sabriya (1957), and Minagish (1959). The first commercial export of crude oil commenced in 1946.[14]

During the Gulf War, as Iraqi forces withdrew from Kuwait in 1991, they set fire to over 700 Kuwaiti oil wells in an act of environmental sabotage. The fires burned for months, causing catastrophic environmental damage, until the last well was capped on 6 November 1991.[15] To address the long-term consequences, KOC and the Kuwaiti government established the Kuwait Environmental Remediation Program (KERP) in 2013. In 2023, KOC signed contracts worth $1.73 billion to expand KERP's soil remediation efforts.[16]

Operations

KOC's operations are focused on the exploration, drilling, and production of oil and gas within Kuwait. The company manages the nation's key oilfields, including the supergiant Burgan field. KOC produces several grades of crude oil, including Kuwait Export Crude (KEC), Kuwait Super Light Crude (KSLC), and developing its heavy crude oil from the Lower Fars field.[28]

Strategic Goals and Recent Projects

KOC is implementing a long-term strategy to significantly boost its production capacity and diversify its energy sources.

  • Production Growth: The central goal is to raise oil production capacity to 4 million bpd by 2040. This involves enhancing oil recovery from mature fields and developing new reservoirs, including heavy oil and offshore resources.[5]
  • Offshore Exploration: In late 2023, KOC launched its first offshore drilling campaign in decades, deploying rigs in the Persian Gulf to explore for oil and gas reserves. This marks a strategic pivot to unlock new sources of production.[29]
  • Durra Gas Field: KOC is proceeding with plans to develop the Durra gas field, located in the neutral zone shared with Saudi Arabia. This project is critical for meeting Kuwait's growing domestic gas demand but is subject to regional geopolitical disputes.[8]
  • Renewable Energy: To diversify its energy mix, KOC is collaborating with the Ministry of Electricity and Water on large-scale renewable energy projects. In May 2024, they announced a plan for a 1-gigawatt solar energy project, seeking a global operator to build and manage the facility under a long-term power purchase agreement.[30]

See also

  • Petroleum industry in Kuwait

External links

References

  1. Extension of Ahmad Al-Eidan's service as CEO of KOC until 2027 Annahar Newspaper, December 2025^
  2. KOC reports KWD 233.7 million net profit for FY 2024/25 Argaam Reports, October 14, 2025^
  3. Kuwait Oil Production CEIC Data, retrieved 2025-10-13^
  4. OPEC Monthly Oil Market Report - October 2025 OPEC, retrieved 2025-10-13^
  5. Mechanical MacDonald. Kuwait's KPC sets sights on 4 million bpd oil capacity by 2040 Reuters, 19 January 2024^
  6. Kuwait Oil Sector AP Consulting, retrieved 17 April 2023^
  7. Kuwait - Country Commercial Guide - Oil and Gas U.S. International Trade Administration, 30 December 2023^
  8. Ahmed Hagagy. Kuwait seeks to boost oil production, pushes on with Durra gas field Reuters, 10 October 2023^
  9. Kuwait Oil Company Archive - Archives Hub archiveshub.jisc.ac.uk, retrieved 2023-07-30^
  10. Kuwait - Concessions The Oil Weekly, 20 May 1946^
  11. Geophysical operations in Kuwait The Petroleum Engineer, October 1946^
  12. Assures New Productive Field On Fringe of Persian Gulf The Oil and Gas Journal, 26 May 1938^
  13. Mohammad Naqi, Ohood Alsalem, Suad Qabazard, Fowzia Abdullah. Petroleum Geology of Kuwait The Geology of Kuwait, Springer International Publishing, 2023^
  14. OPEC-Kuwait facts and figures OPEC^
  15. Richa Syal. 'Gushing oil and roaring fires': 30 years on Kuwait is still scarred by catastrophic pollution The Guardian, 2021-12-11, retrieved 2024-03-09^
  16. Ahmed Hagagy. Kuwait Oil Company signs $1.7 bln soil-rehab contracts Reuters, October 18, 2023^
  17. World Oil's 3rd Annual World Oil Atlas - Drilling Activity by Countries in 1946 and 1947 World Oil, July 1948^
  18. World Oil's 4th International Operations Issue - Drilling Activity in 1947 and 1948 by Countries World Oil, 15 July 1949^
  19. World Oil's 5th International Operations Issue - Drilling Activity in 1948 and 1949 by Countries World Oil, 2 July 1950^
  20. World Oil's 7th International Operations Issue - Drilling in Kuwait World Oil, 15 July 1952^
  21. World Oil's 8th International Operations Issue - Drilling Activity in 1951 and 1952 by Countries World Oil, 15 August 1953^
  22. World Oil's 9th International Operations Issue - Wells and Footage Drilled in 1952 and 1953, by Countries World Oil, 15 August 1954^
  23. Kuwait... World Oil, 15 August 1955^
  24. World Oil's 10th International Outlook Issue - World Drilling Activity World Oil, 15 August 1955^
  25. Kuwait - History of Development The Oil Weekly, 20 May 1946^
  26. Prolific Production Expected in Saudi Arabia and Kuwait The Petroleum Engineer, October 1938^
  27. The Petroleum Resources of the Middle East Energy Information Administration, May 1983^
  28. Kuwait's first heavy oil production to begin in months S&P Global, retrieved 2025-10-13^
  29. Kuwait Oil Co starts first offshore drilling Zawya, 20 August 2023^
  30. Kuwait expands renewable energy ambitions: 1 gigawatt solar project underway Arab Times, 2024-05-08, retrieved 2025-10-13^