Kuwait Boosts Oil Production Capacity with $7 Billion Pipeline Lease Deal
OPEC+ nations are steadily restoring oil production, maintaining market resilience and stable oil prices today. Kuwait Petroleum Corporation (KPC) CEO Sheikh Nawaf Saud Al-Sabah confirms a balanced market. Meanwhile, KPC explores international partnerships to boost capacity.
KPC is discussing a $7 billion pipeline lease deal with international oil companies. This would allow foreign and domestic investors to lease 13 pipelines for up to 25 years, potentially starting in April 2024. The deal aims to increase Kuwait's oil production capacity to 4 million barrels per day by 2035.
In anticipation of growing demand, Kuwait plans to invest between 10 and 15 billion dinars ($33-50 billion) in oil production capacity expansion. KPC has already secured a ten-year agreement with China to supply 300,000 barrels per day of oil. The company is also looking into new investment models to attract international oil companies and further boost capacity.
As global oil demand continues to rise, OPEC+ members are gradually increasing supply without causing major disruptions. Despite the increased output, oil prices have held steady due to strong summer demand. Kuwait, with its significant spare production capacity, is actively expanding its oil production capacity through strategic partnerships and investments.
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