Kuwait contains 96.5 billion barrels of proven oil reserves, or roughly 9% of the world's total reserves. Along with Saudi Arabia and the United Arab Emirates, Kuwait remains one of the few oil producing countries with significant potential for increasing production capacity.

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GENERAL BACKGROUND
Following a period of massive reconstruction in 1992 and 1993, the Kuwaiti economy has recovered impressively from the devastating effects of Iraqi's August 1990 invasion. All told, the Iraqi invasion, Desert Storm, and recovery efforts afterwards are estimated to have cost Kuwait more than $120 billion. Today, however, Kuwait's economy appears to be relatively strong. In 1996, Kuwait's gross domestic product (GDP) grew by an estimated 2.2%, while inflation remained low at around 4%. In addition, strong oil export revenues helped ease pressure on government finances (the first budget surplus since Iraq's invasion has been announced for fiscal year 1996/97) while improving Kuwait's current account and trade balances. The current account in 1996 stood at a surplus of about $4.5 billion, up from a deficit of $25 billion in 1991. In December 1996, Kuwait repaid the last installment on its sovereign debt, and the Reserve Fund for Future Generations is growing again, after being cut from $100 billion prior to Iraq's invasion to $35 billion in 1995.

As it has for many years, oil continues to play a critical role in Kuwait's economy, accounting for more than 90% of the country's export revenues and 80%-85% of government income. Between the 1991 and 1994 fiscal years (starting annually on June 30), the government ran budget deficits equivalent to about 40% of the country's annual oil export revenues. In 1995 and 1996, however, Kuwait's budget deficit was reduced markedly because of government reforms, but even more due to increased oil production and higher than expected oil prices. The 1996 budget, for instance, had assumed oil prices of $13/barrel -- $3.80/barrel below the average price for Kuwait crude in 1996 (Kuwait prices its crude oil at prevailing Arab Medium formulas in the United States and Europe, and 10 cents below Arab Medium in Asia).

In 1994, the World Bank was tasked to survey the Kuwaiti economy and to provide recommendations. As of March 1997, Kuwait had taken several of these recommended steps, including privatization of $2 billion in state-owned companies. The aim of privatization, according to Deputy Prime Minister and Finance Minister Nasser al-Rudhan, is to increase citizen's roles in national investments, to boost the private sector, and to encourage foreign investment. On February 1, 1997, the Supreme Petroleum Council approved the sale of one-third of the country's 90 gasoline stations, with the intention of selling off the remainder at some point in the future. Meanwhile, Minister al-Rudhan has stated that Kuwait will pass an overall privatization law during the current National Assembly's 4-year legislative term (which began in October 1996). Kuwait's improved economy has reduced pressure for cuts in other politically popular but expensive programs, such as the country's generous subsidy programs for Kuwaiti nationals (who receive nearly everything they need either heavily subsidized or free from cradle to grave), or government employment for 93% of the Kuwaiti workforce.

Politically, Kuwait is unique in the Gulf region because of the relative power and freedom granted to its parliament, which was reinstated in 1992 after being suspended in 1985. Elections for Kuwait's National Assembly (with the electorate restricted to only 107,000 men) were held in October 1996, with major issues being corruption, lack of leadership from the ruling family leading up to the Iraqi invasion, and rising crime since liberation. In June 1997, Kuwait's government hinted that it might dissolve parliament if opposition legislators continued to level corruption accusations against it in the context of the attempted assassination of parliament member (MP) Abdallah Nibari. Nibari, a member of the opposition liberal Democratic Forum (DF) group, has played a leading role in campaigning against official corruption. Several oppositions MPs have stated their belief that Nibari's attackers were linked to senior government officials, including the finance minister and former oil minister.

Kuwait's foreign policy continues to remain focused on regional security issues. Since Operation Desert Storm, Kuwait has maintained close military cooperation with Western countries. In October 1994, the United States, the United Kingdom, and other countries came to Kuwait's assistance after Iraq moved 60,000 troops and heavy armor to within 20 miles of the Kuwaiti border. In April 1996, a six-day military exercise was held in Kuwait, involving forces from the United States, the United Kingdom, Russia, China, Italy, and other Arab nations. Also in April 1996, the United Nations renewed its multi-national force of border observers. Since 1991, the U.N. has maintained an observer force to oversee the 9-mile wide demilitarized zone. In another development, a Saudi-Kuwaiti technical committee is scheduled to meet by late October 1997 to finalize details on boundaries for the Neutral Zone (also known as the Divided Zone or Partitioned Zone) between the two countries.

OIL
Kuwait contains an estimated 96.5 billion barrels of proven oil reserves, over 9% of the world total. The Neutral Zone area, which Kuwait shares with Saudi Arabia, holds an additional 5 billion barrels of reserves, half of which belong to Kuwait. Most of Kuwait's oil reserves, however, are located in the 70-billion barrel Greater Burgan area, which comprise the Burgan, Magwa, and Ahmadi structures. Greater Burgan is widely considered the world's second largest oil field (and the country's "crown jewel"), surpassed only by Saudi Arabia's Ghawar field. Kuwait's Raudhatain, Sabriya, and Minagish fields have large proven reserves as well, with 6 billion, 3.8 billion, and 2 billion barrels of oil, respectively. All of these fields have been producing since the 1950s. They generally contain medium to light crude oil with gravities in the 30^o to 36^o API range. The South Magwa field, discovered in 1984, is estimated to hold at least 25 billion barrels of light crude oil with a 35^o to 40^o API.

Another Kuwaiti field -- Ratqa -- has been extremely controversial. This controversy stems from the fact that Ratqa, which was once thought to be an independent reservoir, is actually a southern extension of Iraq's super-giant Rumaila field. Making matters worse, Iraq disputed its border with Kuwait, and in fact claimed the entire country as part of Iraqi territory. During the weeks preceding Iraq's August 1990 invasion of Kuwait, Iraq had accused Kuwait of stealing "billions of dollars" worth of Rumaila oil, and had refused to negotiate a sharing or joint development arrangement for Ratqa and southern Rumaila. In late 1994, Iraq finally recognized Kuwaiti independence as well as Kuwait's new U.N.-drawn border which now includes a 1919-foot extension for Ratqa further to the north.

In mid-1993, Kuwait's oil output surpassed pre-war levels. By August 1997, Kuwait was producing an estimated 2.4 million barrels per day (bbl/d), including 250,000 bbl/d of Neutral Zone production. Production facilities at Greater Burgan were damaged heavily by Iraqi troops during the Gulf War. Iraqi sabotage activities resulted in the loss of 1.1 billion barrels of Kuwaiti oil, including 730 million barrels from Greater Burgan. Following infrastructure reconstruction and field rehabilitation efforts, the field's output has resumed to normal. Kuwait plans to conduct a feasibility study on the possibility of rehabilitating polluted oil lake beds, which were created by the more than 23 million barrels of crude oil spilled in the desert from oil wells sabotaged by withdrawing Iraqi troops.

Crude Oil Exports
Kuwait exports the majority (60%) of its oil to Asian countries, especially Japan. Other oil exports go to Europe and the United States. KPC's Kuwait Oil Tanker Co. has 39 oil tankers -- one of the largest fleets in OPEC -- with total capacity of more than 3.8 million dead weight tons (dwt). Kuwait's export blend is 31^oAPI (a typical medium-heavy Mideast crude), and is considered "sour" with 2.5% or greater sulphur content. Since 1990, Kuwaiti oil exports to the United States have been relatively small. This is due in part to increased production by Western Hemisphere oil suppliers such as Venezuela. During the first half of 1997, the United States imported 232,000 bbl/d of Kuwaiti crude oil, or about 2.3% of total U.S. oil imports. This compares to the peak of 353,000 bbl/d (4.1% of U.S. oil imports) reached in 1993.

Production Capacity
The small level of Kuwait's oil exports to the United States belies Kuwait's importance to world oil markets. Kuwait has huge oil reserves which will long outlast other producers outside the Persian Gulf. In 1997, Kuwait's total oil production capacity, including the Neutral Zone, is estimated at 2.4 million bbl/d. In September 1995, former Kuwaiti Oil Minister Abd al-Mushin al-Mudij stated that Kuwait's current quota "does not represent its ambitions and does not meet its needs under the difficult financial situation." In the past, Kuwait has pushed for a 2.2 million bbl/d quota which would bring it into parity with the United Arab Emirates.

Oil Production Capacity Expansion
Kuwait plans to raise its total oil production capacity to 3.5 million bbl/d by 2005, from 2.4 million bbl/d currently. According to the Kuwaiti Oil Ministry, total cost for the related upstream and downstream expansion is expected to total $15 billion between 1995 and 2005. Expansion plans focus on the northern part of the country, although other areas are not being neglected Among the northern fields expected to receive priority development efforts are: the Zubair reservoir in the Ratqa oil field, and the Zubair and Ratawi reservoirs in the Abdali field; also the Mauddud and upper Burgan reservoirs in the Sabriya and Bahra fields. Combined, the northern fields of Raudhatain, Sabriya, Bahrah, Ratqa, and Abdali are being expanded to 1.25 million bbl/d in capacity by 2005, compared to 400,000 bbl/d presently.

Although Kuwait needs to attract foreign companies to develop its oil industry, it is reluctant to open the country's upstream fully to foreign investment. (In a possible sign of change, in late September 1997, Kuwait's Supreme Petroleum Council appeared to be leaning in favor of allowing greater foreign participation, but Kuwait's parliament and public opinion remain obstacles.) Kuwait's reluctance in this area stems from oil's vital strategic role in the country's economy, with 80%-85% of national revenue generated through oil exports. Currently, foreign companies are barred from equity and production sharing participation in Kuwait's upstream oil sector. Service contracts, however, which Kuwait's oil minister Mazidi calls "strategic partnerships," have been concluded with 5 major oil companies (British Petroleum, Chevron, Royal Dutch/Shell, Exxon, and Total). Total was the latest of these companies to sign a service contract -- on July 9, 1997 -- to assist in KOC-Texaco onshore operations in the Neutral Zone. Meanwhile, in another effort to help attract foreign investment, KPC reportedly is considering production sharing arrangements, which it has long opposed. In general, foreign firms are more interested in offshore development, which has high perceived oil development prospects and carries less political risk, than development of onshore fields near the Iraqi border.

Kuwait's ambitious oil production capacity expansion program began to progress in 1995. This expansion will include the refurbishment of gathering centers (GCs) as well as installation of gas/oil separation plants (GOSPs -- important since most of Kuwait's natural gas is "associated" with oil, therefore necessitating separation of the two), gas compression facilities, desalting plants, and enhanced oil recovery systems at several fields. In addition, onshore and offshore survey work is now being undertaken to review existing data on undeveloped fields and to explore for new structures. In July 1997, a $130 million contract was awarded to South Korea's Daelim Engineering to build an oil gathering complex (called Center 25) in the northern Raudhatain field. The complex will collect and process 250,000 bbl/d of oil, then pump it to export and storage facilities at Al Ahmadi. Meanwhile, a $96 million contract for enhanced oil recovery through water injection has been awarded to Italy's Snamprogetti.

The bulk of Kuwait's oil production occurs at the onshore Greater Burgan field, whose Burgan, Magwa, and Ahmadi structures produce roughly 1.6 million bbl/d combined. Most of Kuwait's other producing fields are relatively small and include the 250,000-bbl/d Raudhatain, 160,000-bbl/d Sabriya, 60,000-bbl/d Minagish, and 60,000-bbl/d Umm Gudair fields. Construction of new gathering centers is a major focus of Kuwait's upstream capacity expansion program. Prior to the Gulf War, Kuwait had 26 GCs (capable of handling 4 million bbl/d), all of which were either damaged or destroyed. By 1993, operations at 18 GCs had been restored. In January 1996, KPC awarded China Petroleum Corporation (CPC) a $390-million contract to build two new GCs, which represents a major step in Kuwait's ability to increase its oil production. CPC is constructing the GCs, designated GC-27 and GC-28, at the Minagish and Umm Gudair fields. When completed in 1998, these GCs are expected to boost output from the two western fields from 120,000 bbl/d at present to over 500,000 bbl/d. The GCs also will be linked by pipeline to the Mina al-Ahmadi refinery. Kuwait reportedly has plans to rebuild GCs 5, 12, and 14 at Burgan as well as refurbishing GCs 24, 25, and 26 at the Sabriya, Raudhatain, and Bahra fields, respectively. Also at these northern fields, BP is assisting KOC in applying EOR technology to boost output from around 450,000 bbl/d at present to 850,000 bbl/d over the next several years.

Neutral Zone
The Neutral Zone encompasses a 6,200 square mile area shared equally between Kuwait and Saudi Arabia under a 1992 agreement. The Neutral Zone contains an estimated 5 billion barrels of oil and 8 trillion cubic feet (TCF) of natural gas. Oil production in the Neutral Zone, which is at least 500,000 bbl/d is exported from area terminals.

Two joint ventures control oil output in the area. Onshore, U.S.-based Texaco and KPC produce from the Wafra, South Fawaris, and South Umm Gudair fields. Texaco plans to boost output in the Neutral Zone's onshore area from around 250,000 bbl/d at present to 300,000 bbl/d by 2000. The war-damaged Wafra field, in particular, is targeted for a 40,000 bbl/d increase. Offshore, the Arabian Oil Company (AOC) of Japan produces around 260,000 bbl/d from the Khafji and Hout fields, both of which are connected to Saudi Arabia's Safaniyah, the world's largest offshore oilfield. AOC is managed by the Japan National Oil Company, with 10% shares being held by the Kuwaiti and Saudi governments, and with AOC's Kuwaiti concession to expire in 2003. Expansion plans call for increasing Kuwait's Neutral Zone oil output to 420,000 bbl/d (from about 250,000 bbl/d now) by 2005.

Foreign Upstream Operations
In the first half of 1997, KPC sold more than $2 billion in foreign assets, and plans to use the income to boost its sustainable crude oil capacity. Since 1991, Kuwait has sold a large share of its international investments, including those in its foreign upstream operations, as part of a strategy to focus on KPC's core functions of crude oil production and refining, as well as petrochemicals. Kuwait also has virtually frozen new foreign oil and gas asset acquisition since that time and pulled completely out of the Americas in 1994.

In December 1996, Kuwait divested its main overseas upstream oil holding, Santa Fe Exploration UK Ltd., which conducts exploration and production in five U.K. sectors of the North Sea, for $1.23 billion. Following this, KPC sold a 31% stake in Santa Fe International for more than $990 million. KPC originally had purchased the Santa Fe group (which produces about 50,000 bbl/d and holds an 8.5% stake in the giant Britannia gas field) in the early 1980s as part of a controversial diversification strategy. Following the sales of its Santa Fe assets, Kuwait, through the Kuwait Foreign Petroleum Exploration Co. (KUFPEC), now maintains about 30,000 bbl/d in overseas oil production, mainly in Tunisia, Australia, Indonesia, and China.

Refining
Kuwait's refining capacity was damaged severely during the Gulf War. After losing most of its pre-war, 820,000-bbl/d capacity, Kuwait had only 200,000 bbl/d of refinery output by early 1992. Kuwait's $400-million downstream reconstruction program was completed in mid-1994. As of July 1997, Kuwait's domestic refineries were operating around pre-War capacity of around 895,000 bbl/d. Mina Ahmadi is the country's largest refinery (and the least damaged during the war), with capacity of 445,000 bbl/d. Other large refineries include Mina Abdullah (255,000 bbl/d) and Shuaiba (195,000 bbl/d).

Kuwait National Petroleum Corporation (KNPC) plans to expand refining capacity further to almost 1 million-bbl/d by 2005. This is part of an overall strategy to focus increasingly on relatively high-value product exports. As of mid-1997, Kuwait was consuming about 130,000 bbl/d of refined products, leaving a balance of over 750,000 bbl/d of products for export. Kuwait's current combined product slate is naphtha, gasoline and reformate (19.5%), kerosene (15.5%), gasoil (30.2%), fuel oil (26.7%), and other products, including LPG, bitumen, sulfur, and coke (1.4%). Major refinery expansion plans currently include: an additional 100,000 bbl/d in capacity at Shuaiba; construction of three units at Mina al-Ahmadi to produce unleaded gasoline for domestic consumption; and a similar upgrading at Mina al-Abdullah.

In late September 1997, about 100 workers at Mina al-Ahmadi staged a 4-day strike demanding better promotion opportunities and improved benefits. The strike was called of in exchange for agreement by KNPC to negotiate. However, on October 6, 1997, the workers' union authorized an "all-out strike" unless their demands were met.

In addition to the refinery projects, KNPC has completed major reconstruction efforts on its Mina al-Ahmadi export facility, Kuwait's main crude oil-export port. Kuwait also has fully operational terminals at Mina Abdullah (repairs completed in September 1992), Shuaiba (restored by late 1996), and at Mina Saud in the Neutral Zone. Prior to the Iraqi occupation, Kuwaiti terminals had the capacity to load more than 3 million bbl/d of crude oil and around 800,000 bbl/d of refined products. Kuwait now has oil export capacity of over 2 million bbl/d. In May 1996, KNPC announced that it would soon start a $100-million project to completely replace one of the two existing Mina al-Ahmadi jetties by late 1998. This project is designed to allow access by larger tankers. However, a Kuwaiti environmental organization recently noted that over 250 sunken vessels still lie in the waters off Kuwait. These may prove to be a shipping hazard with increased tanker traffic flows.

KPC is expanding its overseas downstream interests in the hopes of attaining a combined European and Asian refining capacity of 700,000 bbl/d by early next century. In July 1997, a KPC/Indian Oil Corp. joint venture completed a project feasibility study regarding construction of a $2.6 billion, 184,000-bbl/d refinery in the northeastern state of Orissa. If the project is approved by the two companies, KPC and IOC each would have a 26% stake in project, with the balance being financed by the private sector.

Meanwhile, Kuwait Oil Thailand and Thai Petrochemical Industry are planning to build a 300,000-bbl/d refinery in Rayong, Thailand, as well as an export refinery located near Pattaya on Thailand's southeast coast. Kuwait also is planning to construct an oil refinery in Indonesia. In Pakistan, KPC signed a MOU in September 1995 concerning the possible construction of a 120,000 bbl/d refinery near Hub in the province of Baluchistan. In April 1997, KPC reduced its annual processing contract with Singapore Petroleum Corporation (SPC) from 40,000 bbl/d to 30,000 bbl/d. KPC owns 10.6% of SPC, which supplies refined products to Indonesia, Thailand, and Vietnam.

KPC currently has 250,000 bbl/d of refining capacity in Europe, including half of Agip's 300,000 bbl/d Milazzo refinery. KPC also owns an 80,000 bbl/d unit in Rotterdam, which it is considering expanding to 150,000 bbl/d. These two refineries enable KPC to supply a large share of its 320,000 bbl/d in European outlets directly (KPC's European distribution network comprises nearly 7,000 AQ8" service stations, with an estimated 6% share of the overall Western European market). In early 1997, KPC closed its Gulfhaven refinery in Denmark, as part of a major revamping of European assets. In May 1997, KPC sold a 3% share in British Petroleum for $2 billion, leaving it with a remaining 6.3% share.

Petrochemicals
Kuwaiti officials have expressed interest in moving to accelerate development of the country's relatively small petrochemical industry. This would accomplish several goals: boosting the value of Kuwait's crude oil reserves; protecting Kuwait's revenues should the price of crude oil fall; and boosting Kuwaiti revenues while adhering to OPEC crude oil quota limitations. Historically, Kuwait's Petrochemical Industries Company (PIC) has mainly manufactured low-value products such as urea, ammonia, and fertilizer for export. PIC is now beginning to move upmarket to production of higher-value products. In early 1997,

PIC was conducting a feasibility study for an aromatics (i.e., benzene, xylene, paraxylene) plant worth between $1 billion and $1.5 billion, which could start production in 1999 or 2000.

The Equate joint venture, involving PIC and Union Carbide, is the country's largest petrochemical project now underway. The $2-billion industrial complex is being constructed at Shuaiba and is due to open November 12, 1997. PIC and Union Carbide each have a 45% share in the project, with the remainder owned by Bubiyan Petrochemical Company. The complex will include a 650,000-metric ton per year (mt/y) ethylene cracker, two polyethylene units with a capacity of 450,000-mt/y, and a 350,000-mt/y ethylene glycol plant. When it opens, the complex will primarily serve Asian and European product markets.

ELECTRICITY
Kuwait currently has an electrical generation capacity of 6,680 megawatts (MW). The Ministry of Electricity and Water (MEW) projects that electricity demand is growing 7% annually, and will reach 9,300 MW by 2000. In order to meet this increase, Kuwait has committed to two major projects. In the first project, South Korea's Hyundai and Japan's Mitsubishi are now working on a 2,400-MW thermal plant at al-Subiya, scheduled to be fully online by 2000. Total project cost is $2.2 billion. MEW is also working on plans for a new thermal power plant at al-Zour, which will also include a desalinization plant with 48 million gallons of water/day capacity. Construction of al-Zour will be open only to U.S. contractors.

COUNTRY OVERVIEW
Head of State: Sheikh Jaber al-Ahmad al-Sabah
Crown Prince, Prime Minister: Sheikh Sa'ad al-Abdullah al- Salem al-Sabah
Independence: June 19, 1961 (from United Kingdom)
Population (1997E): 2.2 million (700,000 Kuwaiti citizens, 1.5 million expatriates)
Location/Size: Middle East, at the head of the Persian Gulf, between Iraq and Saudi Arabia/6,900 square miles, slightly smaller than New Jersey
Major Cities: Kuwait City (capital), Salmiya, Hawalli
Languages: Arabic
Ethnic Groups: Kuwaiti (45%), other Arab (35%), South Asian (9%), Iranian (4%), other (7%)
Religion: Muslim (85% - Shi'a 30%, Sunni 45%, other 10%), Christian, Hindu, Parsi, other (15%)
Defense (8/96): Army (11,000), Air Force (2,500), Navy (1,800), National Guard (5,000)

ECONOMIC OVERVIEW
Currency: Dinar
Market Exchange Rate (7/97): US$1 = 0.304 dinars
Gross Domestic Product (GDP) (1997E): $29.1 billion
Real GDP Growth Rate (1997E): 3%
Inflation Rate (1997E): 4%
Current Account Balance (1997E): $4.66 billion
Major Trading Partners: United States, Japan, Europe
Merchandise Exports (1996E): $14.7 billion
Merchandise Imports (1996E): $7.9 billion
Major Export Products: Petroleum (93%)
Major Import Products: Industrial goods (24%), consumer goods (24%), machinery (18%), transport equipment (18%), food (13%)
Oil Export Revenues (1997E): $14 billion
Oil Export Revenues/Total Export Revenues (1997E): 93%
Total External Debt (1997E): None

ENERGY OVERVIEW
Minister of Oil: Issa Mohammed al-Mazidi
Proven Oil Reserves (1/1/97E): 96.5 billion barrels (including 2 billion in the Neutral Zone, also known as the Divided Zone or Partitioned Zone)
Oil Production (1H97E): 2.16 million barrels per day (bbl/d), of which 2.08 million bbl/d is crude oil (Note: All production and capacity estimates include one-half of the Neutral Zone shared with Saudi Arabia) 
OPEC Crude Oil Production Quota (1997E): 2.0 million bbl/d
Oil Production Capacity (1997E): 2.4 million bbl/d
Oil Consumption (1997E): 160,000 bbl/d
Crude Oil Refining Capacity (1997E): 895,000 bbl/d
Net Oil Exports (2H97E): 2.0 million bbl/d (1.2 million bbl/d of crude oil, 800,000 bbl/d of products)
Major Crude Oil Customers: Asia (60%); Europe, South Africa, United States
Natural Gas Reserves (1/1/97E): 52.9 trillion cubic feet (Tcf)
Natural Gas Production (1996E): 0.21 Tcf
Natural Gas Consumption (1996E): 0.21 Tcf
Electric Generation Capacity (1/1/96E): 7.0 gigawatts
Electricity Production (1996E): 23 billion kilowatthours

ENVIRONMENT OVERVIEW
Total Energy Consumption (1995E): 0.55 quadrillion Btu
Energy Consumption per 1987 Dollar of GDP (1995E): 24.6 thousand Btu (vs. 16.7 thousand Btu in U.S.)
Energy Consumption per Capita (1995E): 322.6 million Btu (vs. 345.9 million Btu in U.S.)
Energy-related Carbon Emissions (1995E): 9.0 million metric tons (0.2% of world carbon emissions)
Carbon Emissions per Thousand 1987 Dollars of GDP (1995E): 0.40 metric tons (vs. 0.26 metric tons in U.S.)
Carbon Emissions per Capita (1995E): 5.3 metric tons (vs. 5.5 metric tons in U.S.)
Major Environmental Issues: Water scarcity, desertification, war damage (including oil spilled in the desert)

OIL AND GAS INDUSTRIES
Organization: The Supreme Petroleum Council governs the nationalized oil industry, which is run by Kuwait Petroleum Corporation (KPC). KPC subsidiaries include: Kuwait Oil Company (KOC) ­ exploration and production of oil and gas; Kuwait National Petroleum Company (KNPC) ­ refining and shipping; Kuwait Petroleum International (KPI) ­ refining and product marketing; Petrochemical Industries Company (PIC) ­ production and marketing of chemical products; Kuwait Foreign Petroleum Exploration Company (KUFPEC) ­ foreign exploration; and Kuwait Oil Tanker Corporation (KOTC) ­ tanker operations
Major Refineries (capacity - bbl/d, 1997E): Mina Al-Ahmadi (445,000), Mina Abdullah (255,000), Shuaiba (195,000)
Major Oil Fields (reserves - billion barrels): Greater Burgan (Burgan, Magwa, and Ahmadi) (70+), South Magwa (25+), Raudhatain (6), Sabriya (3.8), Abdaliya (2), Umm Gudair, Minagish (2), Rugei, Bahra; Neutral Zone: Wafra, South Fawaris, South Umm Gudair (0.1), Al-Hout, Khafji
Major Pipelines: Raudhatain-Ahmadi; Minagish-Ahmadi; Umm Gudair-Shuaiba; Wafra-Mina Abdulla; Burgan-Ahmadi
Major Oil Terminals: Mina Al-Ahmadi, Mina Abdullah, Shuaiba, Mina Saud
Major Foreign Oil Company Involvement: British Petroleum, Chevron, Royal Dutch/Shell, Texaco

Links to other sites:
1997 CIA World Factbook - Kuwait
U.S. International Trade Administration, Country Commercial Guide - Kuwait
U.S. Department of Energy's Office of Fossil Energy's International section - Kuwait

The following links are provided solely as a service to our customers, and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.

Kuwait National Petroleum Company
The Center for Middle Eastern Studies - Kuwait
Information on Kuwait from Arabia On-Line
Information on Kuwait from ArabNet

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File last modified: October 14, 1997

Contact:

Lowell Feld
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