KPC allocates KD 1.3b to develop ‘gas fields’
Is Shale oil production higher?
KUWAIT CITY, June 19: Kuwait Petroleum Corporation (KPC) has allocated KD 1.3 billion from its next budget to develop gas fields, especially Jurassic gas fields at North Kuwait, which has a production capacity reaching up to 510 million cubic feet per day, so that they are operational by 2020, reports Al-Shahed daily quoting informed sources.
They explained that KPC is working on completing short-term and long-term plans to implement the best solutions for developing Jurassic gas fields with the cooperation of Kuwait Oil Company (KOC) and using suitable technology in digging wells besides implementing risk management programs for deep wells and others to improve the performance of the producing ones.
The sources indicated that Kuwait’s production of natural gas has reached 170 million cubic meters per day, affirming that the production will increase gradually this month with the start of operations of some facilities that are coming into service one after the other.
They said KPC is planning to dig 12 developmental wells annually as part of its plans to develop Jurassic gas fields in North Kuwait that require some special type of technology and specialized manpower.
Meanwhile, Minister of Oil, Electricity and Water Essam Al-Marzouq affirmed the declining oil prices in the global market will reflect negatively on the production of shale oil as well as countries where the cost of oil production is high, indicating production will drop automatically in those countries and cause oil prices to improve again, reports Al-Nahar daily.
In response to a question concerning Kuwait’s choices in dealing with problems associated with the falling oil prices and the need to stick to the continual reduction in production agreement by all OPEC member countries from May 25 until March 2018, Al-Marzouq said it’s unwise to declare whether or not the agreement is a failure since it has yet to commence. He explained the agreement to extend reduction of production will start July 1, 2017 to March 31, 2018.
He noted many questions are begging for answers to understand the purpose of the aforementioned agreement. He wondered if excess reservoir continues to increase or decrease and if the figures released by secondary sources affirm abidance of the countries to low production or not.
Is the increase in production of shale oil higher than anticipated at the beginning of the year? Are the outputs of Libya and Nigeria higher than they were earlier this year?