Kuwait renews Shell deal as it seeks to hit 4-million-bpd capacity target
Kuwait, which has one of the lowest costs of production in the world, has lagged behind its regional peers in expanding oil production capacity.
DUBAI — State-owned Kuwait Oil Company has extended three technical agreements with energy giant Shell as the OPEC member seeks to raise its oil production capacity to 4 million barrels per day and its gas production capacity to 2 billion cubic feet per day by 2040.
The agreements, originally signed in 2016 for a 10-year term, will now be extended to 2029. They focus on boosting production capacity in Kuwait’s northern and western oil fields, as well as on enhancing gas development projects.
Under the renewed terms, Shell will assist Kuwait in achieving its long-term production goals. Shell CEO Wael Sawan traveled to Kuwait for the signing ceremony and met with Crown Prince Sheikh Sabah al-Hamad al-Sabah and Oil Minister Tareq al-Roumi.
Despite its low-cost production advantages, Kuwait — the fourth-largest producer in OPEC — has lagged behind regional peers such as Saudi Arabia and the United Arab Emirates in expanding output, hampered by years of political instability, resistance to foreign investment and legislative gridlock.
