KPC al­lo­cates KD 1.3b to de­velop ‘gas fields’

Is Shale oil pro­duc­tion higher?

Arab Times - - LOCAL -

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.

De­clin­ing

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?

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