Kuwait: political reform and revival of the oil sector

The dissolution of Kuwait's parliament and the suspension of certain constitutional articles by Emir Sheikh Meshal augur an era of stability and dynamism for the country's energy sector, according to analysts.

Share:

Le Koweit souhaite augmenter sa production de pétrole d'ici 2035.

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Kuwait, OPEC’s fourth largest producer, aims to increase its production capacity to 4 million barrels per day (b/d) by 2035. At present, the country’s production capacity falls far short of this target due to years of political instability and parliamentary opposition to foreign investment. The recent dissolution of parliament by Emir Sheikh Meshal al-Ahmad al-Jaber al-Sabah and the suspension of certain constitutional articles mark a turning point. Emad Mohammad al-Atiqi, Kuwaiti academician and Oil Minister, retains his post under the new government. “Greater government stability would be beneficial for the Oil Ministry, which has seen a lot of turnover in recent years,” says Kristin Diwan, senior researcher at the Arab Gulf States Institute in Washington.

Ambitious production targets

Kuwait aims to increase its production capacity to 4 million b/d by 2035. They estimate around 3.65 million b/d from Kuwait Oil Company assets and 350,000 b/d from the Neutral Zone shared with Saudi Arabia. Compared with other Gulf producers such as the United Arab Emirates and Saudi Arabia, Kuwait is still a long way from its target. Experts believe that the Kuwaiti government will be heavily scrutinized for delivering on its promises. “Further opening up of the hydrocarbon sector to new foreign investment is possible in this context,” explains Mariam al-Shamma, political risk and upstream analyst at Global Commodity Insights.

Challenges facing aging assets

Kuwait’s current production capacity is 2.9 million b/d, but production in April was limited to 2.44 million b/d due to OPEC+ cuts. The biggest challenge is to develop the aging assets of the Greater Burgan field. In particular, it is already producing close to full capacity thanks to improved recovery techniques such as gas injection and water flooding. Despite efforts to increase production, some industry sources doubt the feasibility of the production targets set. “Kuwait is targeting 3.2 million b/d by 2025, but that remains to be seen,” says Chad Barnes, upstream asset valuation analyst at Commodity Insights.

Opportunities and prospects

The new political climate could make it easier to expand production capacity at the Greater Burgan field and allow companies like BP and Shell to participate without parliamentary obstacles. Kuwait could also accelerate the discovery of new oil and gas fields. In addition, the Neutral Zone shared with Saudi Arabia resumed production in 2020 after a four-year hiatus. This is another potential source of capacity increase. However, operational challenges remain, as do negotiations with Iran over the Durra offshore field. The dissolution of Kuwait’s parliament and the suspension of certain constitutional articles by Emir Sheikh Meshal al-Ahmad al-Jaber al-Sabah could usher in a new era for the country’s energy sector.

 

 

 

A drone attack on a Bachneft oil facility in Ufa sparked a fire with no casualties, temporarily disrupting activity at one of Russia’s largest refineries.
The divide between the United States and the European Union over regulations on Russian oil exports to India is causing a drop in scheduled deliveries, as negotiation margins tighten between buyers and sellers.
Against market expectations, US commercial crude reserves surged due to a sharp drop in exports, only slightly affecting international prices.
Russia plans to ship 2.1 million barrels per day from its western ports in September, revising exports upward amid lower domestic demand following drone attacks on key refineries.
QatarEnergy obtained a 35% stake in the Nzombo block, located in deep waters off Congo, under a production sharing contract signed with the Congolese government.
Phillips 66 acquires Cenovus Energy’s remaining 50% in WRB Refining, strengthening its US market position with two major sites totalling 495,000 barrels per day.
Nigeria’s two main oil unions have halted loadings at the Dangote refinery, contesting the rollout of a private logistics fleet that could reshape the sector’s balance.
Reconnaissance Energy Africa Ltd. enters Gabonese offshore with a strategic contract on the Ngulu block, expanding its portfolio with immediate production potential and long-term development opportunities.
BW Energy has finalised a $365mn financing for the conversion of the Maromba FPSO offshore Brazil and signed a short-term lease for a drilling rig with Minsheng Financial Leasing.
Vantage Drilling has finalised a major commercial agreement for the deployment of the Platinum Explorer, with a 260-day offshore mission starting in Q1 2026.
Permex Petroleum has signed a non-binding memorandum of understanding with Chisos Ltd. for potential funding of up to $25mn to develop its oil assets in the Permian Basin.
OPEC+ begins a new phase of gradual production increases, starting to lift 1.65 million barrels/day of voluntary cuts after the early conclusion of a 2.2 million barrels/day phaseout.
Imperial Petroleum expanded its fleet to 19 vessels in the second quarter of 2025, while reporting a decline in revenue due to lower rates in the maritime oil market.
Eight OPEC+ members will meet to adjust their quotas as forecasts point to a global surplus of 3 million barrels per day by year-end.
Greek shipping companies are gradually withdrawing from transporting Russian crude as the European Union tightens compliance conditions on price caps.
A key station on the Stalnoy Kon pipeline, essential for transporting petroleum products between Belarus and Russia, was targeted in a drone strike carried out by Ukrainian forces in Bryansk Oblast.
SOMO is negotiating with ExxonMobil to secure storage and refining access in Singapore, aiming to strengthen Iraq’s position in expanding Asian markets.
The European Union’s new import standard forces the United Kingdom to make major adjustments to its oil and gas exports, impacting competitiveness and trade flows between the two markets.
The United Kingdom is set to replace the Energy Profits Levy with a new fiscal mechanism, caught between fairness and simplicity, as the British Continental Shelf continues to decline.
The Italian government is demanding assurances on fuel supply security before approving the sale of Italiana Petroli to Azerbaijan's state-owned energy group SOCAR, as negotiations continue.

Log in to read this article

You'll also have access to a selection of our best content.