Kuwait expands oil, gas strategy with overseas ventures, new projects

KUWAIT CITY – Kuwait is actively seeking international collaboration to accelerate the development of its recently announced offshore oil and gas discoveries, as part of a sweeping strategy to modernise its energy sector and secure its position among the world’s leading oil producers.

Kuwait’s Prime Minister sheikh Ahmad Abdullah Al-Ahmad Al-Sabah announced on Tuesday that the Kuwait Petroleum Corporation (KPC) plans to invite global oil companies to participate in the development of the country’s offshore reserves. Speaking at the 5th Kuwait Oil & Gas Show, he said the move is part of a broader vision to enhance investment efficiency, expand production capacity, and attract foreign capital.

In addition, Sheikh Nawaf Saud Al-Sabah, CEO of KPC, confirmed that Kuwait Foreign Petroleum Exploration Company (KUFPEC) is set to sign a contract with Royal Dutch Shell for investment in a Brazilian oil field, marking another step in Kuwait’s expanding international footprint.

Kuwait is also in talks with global financial institutions to finalise lease and re-lease agreements for its domestic oil pipeline network. Sources indicated last month that Kuwait plans to sell a stake in its pipeline infrastructure as early as February, a transaction expected to generate up to $7 billion.

Separately, Kuwaiti Oil Minister Tariq Al-Roumi said that tenders for the Dorra oil and gas field, a joint project with Saudi Arabia, are expected to be launched later this year, further underlining Kuwait’s drive to diversify and modernise its energy assets.

Kuwait operates its energy sector through KPC and its subsidiaries, overseeing exploration, production, refining and export operations. Long-term investment plans aim to secure Kuwait’s standing as a major oil producer while optimising state revenue.

According to official estimates, Kuwait intends to invest over $500 billion in the sector by 2040, covering multiple phases of field development, infrastructure expansion and facility upgrades. A significant portion of these investments is slated for the next five years, reflecting a priority on boosting production capacity and modernising infrastructure.

The country is seeking to expand both oil and gas production over the next two decades, while balancing output with OPEC+ policies designed to maintain market stability. Projects such as the Dorra field are central to Kuwait’s gas strategy, supporting both energy diversification and enhanced domestic capabilities.

Attracting foreign investment is a key element of Kuwait’s strategy, with plans to involve international companies in developing offshore projects and critical domestic assets, including pipeline networks. The strategy also extends beyond national borders: KUFPEC manages overseas oil and gas ventures, including projects in Indonesia, demonstrating Kuwait’s intent to diversify income streams and reduce reliance on domestic production alone.

Kuwait is also advancing its refining and petrochemicals sector, aiming to convert crude oil into higher-value products. This is part of a broader plan to enhance revenues, reduce dependency on crude exports, and integrate more deeply into the global energy value chain.

Overall, Kuwait’s ambitious investment drive reflects a determination to modernise the energy sector, strengthen competitiveness, and respond to evolving global energy demand. Officials stress that enhancing production and infrastructure is not only a financial priority but a strategic necessity to maintain Kuwait’s influence in global energy markets.