Kuwait Oil Company celebrates 85th ’versary of establishment

Agreement signed in 1934 was the most prominent event

KUWAIT CITY, Dec 21, (KUNA): Kuwait Oil Company (KOC) celebrates on Sunday the 85th anniversary of being granted oil drilling concession right in the country under the agreement signed by the late Amir Sheikh Ahmad Al-Jaber Al-Ahmad Al-Sabah on Dec 23, 1934.

The agreement was the most prominent event in the history of the Kuwait Oil Company, which was then called (Kuwait Oil Company Limited). Some believe that the date of signing of the agreement is the same date of the company’s establishment, however, the company was established in February 1934.

It was expected then that the agreement would have contributed to increase the wealth of Kuwait and its international importance through oil exploration concession, but the outbreak of World War II was one of the reasons for the delay in oil exploitation, and with the end of the war, Kuwait had turned from resource-poor desert country into a modern rich state.

Shares

Kuwait Oil Company was established in February 1934 in London, with an initial capital of 50,000 pounds with joint ownership and equal shares among all of the Anglo-Persian oil company, now known as British Petroleum (BP) and Gulf oil company currently known as (Chevron).

In Dec 1, 1975, an agreement was signed between the Kuwaiti Government, British Petroleum Ltd. (BP Kuwait) and Gulf Oil Company stipulating that as of March 5, 1975, all remaining shares of the two companies including concession rights be transferred to the government Kuwait.

The signing ceremony, which was seen as an official reference to shifting KOC to become entirely owned by the government, took place on Dec 6, 1975 in Kuwait, and then over the past long years, there were many events that constituted milestones in the history of the KOC.

Among the most prominent of these events was the discovery of oil in commercial quantities in the Burgan well in February 1938, however, Kuwait had not benefited from this wealth until on June 30, 1946 when the first shipment of oil was exported.

The year 1946 also saw the establishment of the southern pier at Mina Al-Ahmadi, while work began to build the city of Al-Ahmadi in an integrated manner to include the main offices, workshops, residential neighborhoods and facilities to become an integrated city in 1949.

Force

In the era of the late Amir Sheikh Abdullah Al-Salem Al-Sabah, increasing in oil production was seen, and in 1955, production began in Raudhatain in north Kuwait, while in 1959, discovery of oil in Managish was discovered in September, while north pier went into force in September of the same year.

In the era of the late Amir Sheikh Sabah Al-Salem Al-Sabah in 1969, the artificial island was launched in addition to its facilities. In 1970, four new collection centers started operation, raising to 25 the total number of gathering centers.

After that, late Amir Sheikh Sabah Al-Salem in November 1976 laid the foundation stone for the gas project in Mina Al-Ahmadi, as well as the docking of the largest oil tanker in February 1977 in the artificial island port of Al-Ahmadi.

And one of the important dates to remember in the history of Kuwait Oil Company was the launching of gas project at Ahmadi port in February 1979 during the reign of the late Amir Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah.

In March 1991, the operation to put out fires at the oil installations and wells got underway. On

July 27, Kuwait exported the first cargo of crude since liberation. On Sept 14, 1991, drilling resumed in Al-Muqawaa field and late Amir Sheikh Jaber Al-Ahmad Al-Sabah extinguished the last burning well on Nov 6, 1991.

Later on, Kuwait restored its status as one of the key oil exporting countries. Its experience in the carbohydrates had a record with the discovery of natural gas, of commercial quantities, in Um Naqa in the north in 2006.

During era of His Highness the

Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, a large number of achievements have been made in the oil sector.

The KOC inaugurated the two water injection installations in Al-Muqawa and Burgan in 2007 and 2008. Moreover, the disassociated gas and condensates unit was opened in the north.

Among the KOC major achievements was the project for renovating the installations, covering 16 gathering units and three gas boosting stations.

The company tested maximum production on Oct 14-18, 2010, reaching up 3.052 million barrels of oil per day – the highest level in the KOC history.

Between 2017 and 2018, the company opened the new Al-Ahmadi hospital, embarked on an oil excavation project in the Kuwait Bay and nearby areas, and began to export the first light crude oil shipments.

In 2019, KOC signed with Halliburton a deal to excavate for oil in the sea, the first deal of its kind in the history of the company.