“The plan is to spend around $11 billion over the next 20 years. This includes all the projects that we have in mind for the development, expansion and drilling,” said Bader al-Khashti, chairman of the state-run firm.
Present average production capacity from the neutral zone is about 538,000 bpd. The zone is an area between Kuwait and Saudi Arabia that dates back to 1920s treaties to set up regional borders.
“I think as a fair target of the (Neutral Zone) area is to go for between 350,000-450,000 bpd as Kuwait’s share by 2030,” Khashti said.
Among the projects to increase capacity in the neutral zone is to use steam injection to increase heavy oil output from the al-Wafra field in partnership with Chevron Corporation and Saudi Arabia.
The project, which is projected to cost around $10 billion and could be used across the region, will increase the recovery rate of heavy oil to 40% from the presnet 5%, Khashti said.
“By September, we will start a pilot project… if it is successful then we will make it fully fledged,” Khashti said.
KGOC, along with Saudi Arabia, is also planning on a new oil and gas exploration project in the onshore area, which includes the Wafra field, to be completed by 2013.
Both projects could increase production from the onshore area to about 400,000 bpd from around 280,000 bpd now, Khashti said.
KGOC is aiming at investing KWD340 million ($1.17 billion) in 2009 to increase oil output from both Wafra and Khafji fields.
KGOC also plans to increase output from the offshore region, which comprises of the Khafji field, to 350,000 bpd by 2013-14 from around 285,000 bpd now, Khashti said.
Kuwait also plans to spend around $4-5 billion to develop the massive Dorra gas field, a point of argument with Iran, from which it aims to begin production by 2017, Khashti said.
“We are drilling on the Kuwaiti side, in the divided zone and it’s completely in the southern area. It’s away from any disputed areas,” Khashti said.
Production is expected to be arund 800 million cubic feet per day (cfd), which will be divided between Kuwait and Saudi Arabia, which is represented by Aramco Gulf Operations Company in the area, Khashti added.
The field lies on the Gulf continental shelf between OPEC producers Kuwait, Saudi Arabia and Iran. Riyadh and Kuwait signed a deal on their part of the maritime border in 2000 but it has remained a disputed region between Kuwait and Iran.
