Kuwait plans to increase crude oil production capacity to more than 3 million b/d beyond 2000.
At the same time, its intends to add refining capacity at home and in Europe and begin refining operations in Asia.
Nader Sultan, deputy chairman and managing director of Kuwait Petroleum Corp. (KPC), told a conference in Singapore the company plans to capitalize on predicted demand for Kuwaiti crude oil and petroleum products.
"We will implement a program of development which will give Kuwait a minimum of 2.5 million b/d of sustainable production capacity in the next few years and a minimum of 3 million b/d in the early part of the next century," Sultan said.
He cited estimates that Organization of Petroleum Exporting Countries members will need to expand combined oil productive capacity by 8-10 million b/d by 2000 and 15.5 million b/d by 2010.
"We are confident of our practical capability to achieve an increase in view of our reserve base and the fact that we used to produce 3.7 million b/d," Sultan said.
"Kuwait is considered one of the few Middle East countries with the potential to substantially increase capacity. In addition, there is Kuwait's need for a growth in revenues."
Kuwait's present production is 2 million b/d.
REFINING STRATEGY
A strategic issue for Kuwait is the long term prospect of the world's increased reliance on heavier and sour crude oils from the Middle East, while at the same time refined product specifications grow tighter.
"We should play an active and leading role in developing additional refining investments of a sophisticated nature, which will transform all sections of sour crude into environmentally clean products," Sultan said.
While Asian countries aim to be self-sufficient in refining rather than import products, Sultan said the Persian Gulf war showed parts of Asia could cope with the loss of crude production from Kuwait but not loss of Kuwait's export refining capacity.
KPC plans to increase domestic refining capacity from about 800,000 b/d crude oil throughout today to a little less than 1 million b/d. Modernization will be undertaken at the same time.
The company also intends to take part in Asian joint ventures with a view to building refineries in consumer countries such as India, Pakistan, and Thailand with total throughput capacity of 400,000 b/d.
"This would be in addition to maintaining about 300,000 b/d capacity in Europe," Sultan said.
KPC operates a 75,500 b/d refinery in Rotterdam and a 56,500 b/d plant at Skaelskoer, Denmark.
A final challenge for KPC is the drive to become more efficient, Sultan said. He said staff layoffs are impossible for KPC on the scale of major oil companies.
"Nonetheless, we have scope to follow their example in other areas, but we need to ensure that we conform to our particular circumstances and to our culture in Kuwait. An interesting new direction is that of privatization. In general, we support this move and have targeted the areas of gasoline retailing, domestic gas supply, and lubricants marketing.
"At the same time, we are starting our new joint venture in petrochemicals with a 10% participation by the private sector. We are focusing more actively on identifying future candidates."
