Kuwait is sticking with plans to add 0.5mb/d of oil production capacity to its national output as it prepares for the eventual expiration of the output quotas OPEC had adopted to help drain a global oversupply, the Head of Kuwait Oil Co. (KOC), Jamal Jaafar, said, according to Bloomberg. The state-run company plans to raise the Gulf nation’s capacity from its current level of 3.15mb/d.
“KOC is producing 2.7mb/d now, and we will maintain this under the deal,” Jaafar said. “At the moment we have the capacity to reach 3.15mb/d, but we will stick to the OPEC agreement.”
However, Jaafar added that KOC, which is responsible for most of Kuwait’s domestic crude production, will add capacity even if OPEC decides to extend the supply cuts beyond June, Times of Oman reported.
“We will continue to increase production capacity because we have a five-year plan to reach 3.65mb/d by 2021, so we cannot stop investing in that,” he said. “We will take advantage of the OPEC cut deal to perform maintenance on facilities in the fields.”
In related news, KOC has signed three service agreements with Royal Dutch Shell and another with BP to develop exploration and production projects. The company plans to drill its first offshore exploration wells by the end of 2017, including wells near Failaka Island in the Persian Gulf, according to Jaafar.
Kuwait is OPEC’s fifth largest oil producer.