Sheikh Nawaf Al Sabah, CEO, Kuwait Petroleum Corporation (KPC): Interview

Interview: Sheikh Nawaf Al Sabah

What are the most attractive investment opportunities in the country’s oil and gas industry?

SHEIKH NAWAF: As part of KPC’s 2040 strategic plan we aim to increase the production of oil to 4m barrels per day (bpd) and gas capacity to 4bn standard cu feet per day (scfd) by 2040. Achieving and sustaining these targets will be largely dependent on implementing a substantial capital investment programme to cover our upstream, midstream and downstream operations.

Onshore and offshore drilling services and equipment are key collaboration opportunities. Development technologies for heavy and unconventional oils are also potential areas for investment, and we expect that enhanced oil recovery applications, as well as environmental and zero-carbon solutions, will attract particular attention. In terms of the downstream sector, we aim to increase our domestic refining capacity to 1.6m bpd and optimise the integration of our refineries with downstream petrochemicals facilities. Petrochemicals and downstream derivatives are additional fields to further expand our downstream sector.

Looking to the future, our energy transition agenda will gain prominence. Partnerships with tech leaders, ventures into new businesses and investment opportunities, and the creation of marketing alliances will help propel us towards achieving our long-term strategy.

Which measures can be implemented to enhance Kuwait’s downstream capabilities and boost its international competitiveness?

NAWAF: The Clean Fuels Project, commissioned in 2022, is a $16bn initiative at the Mina Al Ahmadi and Mina Abdullah refineries, two facilities that have already started exporting environmentally friendly fuels. We are also commissioning Al Zour refinery, a $16bn refinery with a capacity of 615,000 bpd.

In terms of downstream activities, we aspire to remain an internationally competitive integrated refining and petrochemicals player. In order to achieve top-quartile performance and financial results, we strive to continuously improve our operational and financial performance to capitalise on our assets and extract the most value from the barrel. We are also pursuing petrochemicals integration opportunities, targeting maximum refinery margins and reliability. KPC is leveraging innovation, research and development (R&D), and digitalisation to achieve these goals.

In what ways are you working to address skills gaps in the domestic oil and gas sector?

NAWAF: Efforts to address the skills gap should be focused on creating development opportunities to shape a new generation of professionals and leaders, giving them the skills they need to better serve the industry and country. In this regard, we are utilising advanced tools in areas such as R&D, innovation, digitalisation, artificial intelligence and automation.

How do you view the significance of natural gas in Kuwait’s future energy mix?

NAWAF: Natural gas is a significant element in the fuel mix for power generation, as well as a primary feedstock for the petrochemical industries. With this in mind, the target is to increase and sustain non-associated gas production of 2bn scfd by 2040. In addition, we are pursuing several projects to upgrade gas infrastructure, including upstream production facilities for associated and free gas, as well as gas treatment facilities. In 2021 KPC commissioned one of the largest liquefied natural gas import facilities in the world, with a capacity of 3bn scfd, and built a comprehensive cross-country fuel gas network for domestic consumption and power generation plants.

Our goal to be net zero by 2050 not only serves environmental, social and governance objectives, but also sets a roadmap for future businesses. These activities include carbon capture and storage, sustainable green hydrogen, biofuels and petrochemical recycling.