Kuwait Plans Offshore Oil Expansion and Foreign Partnership Drive

Kuwait has announced a major strategy to expand its offshore oil and gas sector, inviting international energy companies to participate in the development of newly identified fields as part of a long-term plan to strengthen national production capacity.

Expansion Strategy

• Production target: Kuwait aims to raise total oil production capacity to 4 million barrels per day by 2035.
• Offshore focus: Newly discovered offshore reserves are expected to play a central role in future output growth.
• Foreign partnerships: International oil companies will be invited to provide technology, investment, and operational expertise.

Investment and Infrastructure

• Pipeline development: Authorities are considering partial stake sales in pipeline assets to help finance expansion projects.
• Technology transfer: Collaboration with global partners is intended to accelerate offshore drilling and recovery capabilities.
• Economic diversification: The initiative forms part of Kuwait’s broader effort to secure long-term energy revenue.

Market Implications

• Regional supply growth: Increased Kuwaiti output could add significant volumes to Middle East oil supply in the coming decade.
• Competitive landscape: The move intensifies competition among producers seeking to maintain market share.
• Energy security: Expanded capacity supports Kuwait’s position as a key global petroleum exporter.

Outlook

The offshore expansion marks one of Kuwait’s most ambitious energy programs in recent years. By combining domestic resources with international expertise, the country aims to modernize its oil sector and secure sustainable production growth well into the 2030s.

Reference

• Source: Reuters – Kuwait energy sector announcements, January 2026