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.[1][2] The country has a long-term strategic goal to increase its production capacity to 4 million bpd by 2040.[3]
Kuwait nationalized its oil industry in 1975.[4] KOC holds the sole rights to explore, produce, and develop oil and gas resources within the state of Kuwait.[5] Kuwait's oil reserves are estimated to be around 101.5 billion barrels.[6]
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).[7][8] The company began drilling operations in 1936.[9]
Oil was first discovered in 1938 at the Burgan field,[a][12] 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.[13]
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.[14] 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.[15]
Production by year, by field (x 1,000 barrels)[25]
Year
Burgan Magwa Ahmadi
Raudhatain
Sabriyah
Gudair
Minagish
Bahrah
1946
5,931
1947
16,225
1948
46,547
1949
89,930
1950
125,722
1951
204,910
1952
273,433
1953
314,592
1954
347,319
1955
398,494
1956
399,871
1957
416,045
1958
509,720
1959
504,855
1960
559,100
35,200
1961
553,926
41,900
1,400
1962
620,000
47,200
2,100
1963
647,700
48,700
3,500
5,600
1964
682,200
53,700
14,100
4,200
20,600
1965
693,200
56,900
17,000
4,900
19,900
1966
716,800
61,400
22,600
4,900
24,800
1967
723,800
59,900
22,600
4,900
25,500
1968
759,700
71,200
26,900
4,900
23,400
1969
777,600
77,200
29,700
33,500
20,600
1,400
1970
806,500
77,900
60,200
32,800
19,300
1,400
1971
858,700
81,600
71,200
34,200
20,700
1,400
1972
882,000
83,900
74,300
34,900
21,300
1,400
1973
809,200
76,400
67,900
32,800
19,300
1,400
1974
665,100
77,000
45,000
25,000
18,500
0
1975
530,400
78,500
25,000
19,000
18,000
1976
574,100
80,453
14,689
13,024
17,715
1977
533,860
70,644
14,825
12,637
18,028
1978
552,700
90,200
32,300
8,300
9,600
1979
618,130
128,369
40,918
14,357
7,419
1980
398,000
70,000
25,300
7,000
6,000
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.[26]
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.[3]
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.[27]
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.[6]
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.[28]
↑ 1 dry wildcat at Umm Gudair (20 miles west of Burgan) abandoned at 8,071ft. Same rig was moved 99 miles in 40 hours and started drilling wildcat Raudhatain No. 1 (57 miles NNW of Ahmadi) which was still drilling at depth of 7,363ft at year's end
↑ "Historical Resume of Oil Production From Fields of the Arabian Platform in Kuwait, Through 1980". The Petroleum Resources of the Middle East. Energy Information Administration. May 1983. p.144.
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