Project Kuwait on the brink: a turnaround in Kuwaiti policy could see major oil projects developed by foreign companies for the first time since nationalisation, over 30 years ago.(BUSINESS & FINANCE)

Publication: The Middle East

Publication Date: 01-DEC-05

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When it was unveiled, the Kuwaiti government's plan to boost production to 4m barrels a day (b/d) by 2020 was regarded as overly ambitious by many observers. Now, however, a combination of new discoveries, improved technology and weak OPEC discipline all make it seem far more attainable. Above all else, there now appears to be the political will in Kuwait to reverse long-standing government policy and hand foreign firms a far greater role in the development of the country's oil wealth.

Despite possessing around 10% of the world's estimated oil reserves, Kuwaiti production falls far short of making the same contribution to global output. Although Kuwaiti oil production has been subject to some severe variations over the past 15 years, notably during the Gulf War, it has generally risen steadily but still stands at just 2.65m b/d. The government now hopes that Project Kuwait, a plan to allow foreign firms to take over the development of oilfields in the north of the country close to the Iraqi border, will make a major contribution to achieving the 4m...

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