Kuwait Oil Company Confirms New Large Oil And Gas Discovery In The Persian Gulf

The commercial quantities of a “large” light oil and associated gas discovery in the offshore Al-Nokhatha field, KPC and its subsidiary, Kuwait Oil Company (KOC), explained that the preliminary estimates of the hydrocarbon reserves were around 2.1 billion barrels of light oil, and 5.1 trillion standard cubic feet of gas, which brings into play about 3.2 billion barrels of oil equivalent (boe).

Kuwait Oil Company (KOC) has announced that it has recently discovered a significant deposit of oil and gas in its Al-Nokhatha field within Kuwait’s exclusive economic zone (EEZ) in the Persian Gulf. KOC said that the discovery, which covers an area of 96 square kilometres east of Failaka island, contains about 2.1 billion barrels of light oil and 5.1 trillion cubic feet (approximately 140 billion cubic metres) of natural gas.

The CEO of Kuwait Petroleum Corporation, Sheikh Nawaf Saud Al-Sabah, and the CEO of Kuwait Oil Company, met with His Highness Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, the Amir of Kuwait, His Highness Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah, the Crown Prince, and His Highness… pic.twitter.com/hJP8088Zj9

— KPC | مؤسسة البترول الكويتية (@kpcofficialkw) July 14, 2024

Kuwait sees this discovery as a breakthrough in its exploration of hydrocarbon resources within its marine area, given the size of the field, with the initial estimated area being approximately 96 square kilometers. According to the Middle Eastern company, the Al-Nokhatha field’s daily production has been calculated at about 2,800 barrels of light oil and 7 million cubic meters of associated gas.

The Al-Nokhatha well is currently producing approximately 2,800 barrels of light oil and seven million cubic feet of associated gas daily. KOC’s Preliminary estimates of the reserves are around 2.1bbbl of light oil and 5.1tcf of gas, which equates to roughly 3.2 billion barrels of oil equivalent. These findings suggest significant potential for further resource enhancement in the field’s various layers and reservoirs, KOC noted. 

KOC believes the initial hydrocarbon reserves represent a sign of immense potential to augment and bolster oil and gas resource quantities in multiple layers and reservoirs within the field. While confirming its intention to come up with a developmental plan as soon as possible to bring the field on stream, the firm emphasized the importance of further offshore exploration in enhancing Kuwait’s hydrocarbon reserves and meeting global demand.

Message from the Chief Executive Officer of Kuwait Petroleum Corporation Sheikh Nawaf Saud Nasir Al-Sabah. pic.twitter.com/I5spper8xi

— KPC | مؤسسة البترول الكويتية (@kpcofficialkw) July 14, 2024

These hydrocarbon exploration efforts are part of the country’s plans to cement its position as a reliable global oil and gas producer and enable it to curb energy costs while working to reach net zero emissions by 2060.

KOC clarified that the figures are “preliminary data” and that the actual hydrocarbon resources contained within the discovery have the potential to be higher than initial estimates.

An initial exploration phase will entail the drilling of six wells. The execution of future drilling phases will depend on the findings of the initial phase.

A series of 2D seismic surveys of Kuwait’s offshore area led to the discovery. These were then followed by geophysical and geological studies to provide a more accurate assessment of the earth layers with the aim of identifying the most optimal drilling sites.

Khaled Al Mulla, KOC’s Deputy CEO of Exploration & Drilling, recently pointed out that the oil sector’s energy transition plan for 2050 was underway, where “a specified action plan has been developed that includes five energy transition initiatives” to meet the target of net zero emissions by that year.

KOC inked an offshore drilling services contract in July 2019 with the U.S. oilfield services giant, Halliburton. Under the terms of the deal, the U.S. giant was expected to provide and manage drilling, fluids, wireline and perforating, well testing, coring, cementing, coiled tubing, and all offshore logistical services.

In addition, Halliburton said it would provide two offshore rigs and supply vessels for the project, which would operate in the Arabian Gulf within Kuwait’s territorial waters. At that time, the expected start date for the first rig was in July 2020 while the second rig was due in January 2021. However, the timeline changed since the drilling campaign ran into delays.

As a result, Kuwait was on the verge of starting its first offshore drilling activities in 2022, three years after signing the deal with Halliburton, as explained by the CEO of the KPC, Sheikh Nawaf Saud Al-Sabah, during the Qatar Economic Forum in 2022. At the time, KPC confirmed that one of the rigs was already in Kuwait and preparing to start its upcoming work. This jack-up is said to be COSL’s Oriental Phoenix rig.

The marine exploration project was initiated based on two-dimensional seismic surveys, and geophysical and geological studies to identify optimal drilling sites and prepare for logistical operations.