Kuwait Digitalizes Oil Fields

Kuwait is seeking to overhaul its downstream operation by adopting innovative strategies, implementing enhanced safety operations, and implementing business optimization techniques. U.S. companies that specialize in advanced solutions for cloud platforms, real-time monitoring, gamification of workflows and cybersecurity capabilities have market potential provided their technology is proven and they are willing to go through the lengthy pre-qualification process. To initiate this process, Kuwait Oil Company may ask the selected vendors to run a pilot project at a small scale to insure the viability of the technology in Kuwait’s harsh environment.

A member of the six-nation Gulf Cooperation Council (GCC), Kuwait is a major oil supplier with crude oil reserves estimated at nearly 101.5 billion barrels, approximately 7% of the world’s reserves. The oil industry accounts for over half of Gross Domestic Product (GDP) and 94.4% of government revenues. Kuwait is a member of the OPEC consortium, which currently has a current production capacity of approximately 3.15 million barrels per day.

With the oil being the primary natural resource and the need to mitigate the risk of falling oil prices, Kuwait allocated a significant budget to spend on projects that focus on optimizing costs and enhancing operation workflows. To achieve these desired results, Kuwait Oil Company (KOC), the state-owned company that is responsible for oil production, is prioritizing the digitalization of oil fields.

Kuwait Oil Company (KOC) successfully completed pilot projects to digitalize oil fields, applying the most advanced technologies to remotely monitor and control oil fields at four different fields in West Kuwait, North Kuwait, and South and East Kuwait. This large-scale project is known as the Kuwait Integrated Digital Field (KwIDF), which consists of 1,000 fields that are linked to the specific project, approximately 50% of KOC’s oil fields.

Kuwait plans to digitalize all its fields within two years.By end of 2021, Kuwait Oil Company is targeting to have 80% of the oil fields digitalized with the exception of Burgan Oil Field. The field is one of the oldest and the second largest fields in the world. Due to the large number of oil fields, digitalizing Burgan is complicated and will require a well-planned strategy, advanced technologies, and strong project management to be successfully achieved.

In addition to the pre-qualification process, U.S. companies doing business in Kuwait are required to appoint a local partner who is well-connected and has significant experience working with the state-owned companies.

For more information, please refer to Energy Resource Guide - Kuwait - Oil and Gas and/or contact Senior Commercial Specialist Dina Alshawa at Dina.Al-Shawa@trade.gov