Kuwait: Mining, Minerals and Fuel Resources

By Samudrapom DamReviewed by Laura ThomsonUpdated on May 9 2025

Kuwait is located in the Middle East and borders the Persian Gulf, between Saudi Arabia and Iraq. As of 2024, it covers a total area of 17,818 km² and has a population of around 3,138,355.¹

Natural gas and petroleum are Kuwait’s most significant mineral resources. In the early 1920s, the government shifted its focus from the pearl industry to oil exploration, prompted by reports of bituminous substances in the desert—an indicator of underground oil reserves. The first oil concession was awarded to the Kuwait Oil Company Limited in December 1934, and oil was discovered at the Burgan field in 1938. Kuwait began exporting oil in 1946. In 1975, the government nationalized the industry, establishing the Kuwait Petroleum Corporation (KPC), which now oversees the country's oil sector with operations spanning six continents.

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The country has a wealthy and steady economy thanks to its huge oil and gas reserves.^2,3 The gross domestic product (GDP) of Kuwait was $163.7 billion in 2023, compared to $154.04 billion in 2011.² The oil sector has accounted for 50% of Kuwait’s GDP.³

Overview of Kuwait’s Resources

Kuwait is awash with resources such as petroleum and its derivatives and natural gas. The country has approximately 105 billion barrels of crude oil reserves, nearly 7% of the world's reserves, and 63 tcf of proven natural gas reserves.^4-6

The oil and gas industry accounts for almost 95% of the country’s total exports and 90% of the fiscal revenue. Kuwait has planned to increase its gas production capacity to 42.5 m cmpd by 2040 and its oil production capacity to 4 m bpd by 2035.^3,5

Kuwait intends to invest $48 billion in exploration and drilling to increase its production of mature and existing oil fields. It also aims to develop unconventional resources, including unassociated gas reserves, heavy oil fields, and offshore exploration.³

In addition to oil and gas, Kuwait also produces cement, clays, gypsum, salt, and sulfur. In 2020, Kuwait's cement production declined to an estimated 3.4 million metric tons (Mt) from 3.9 Mt in 2019.⁷

Kuwait Cement Co. (KCC) operated cement kilns in Shuaiba with a 4.9 Mt/yr clinker and 5.2 Mt/yr cement capacity. Gulf Nations Construction Materials Co. ran the 2.3 Mt/yr Baitak cement plant, while ACICO Cement Co. had a 1.0 Mt/yr clinker and 3.2 Mt/yr cement capacity in the same area.⁷

Current Landscape

Kuwait's crude oil production was reported at 2.41 million barrels per day (b/d) in January 2025, slightly decreasing from December 2024's 2.43 million b/d.

The country attained its peak production of 3.12 million b/d in April 2020, with its lowest point being 1.83 million b/d in February 2002.⁸ In 2023, Kuwait's total exports were valued at $71 billion, positioning it as the 47^th largest global exporter. The major exports were $35.7 billion worth of crude petroleum, $23.7 billion worth of refined petroleum, and $3.27 billion of petroleum gas.⁹

Kuwait's refining capacity surged in 2024, particularly with the full ramp-up of the 615,000 b/d al-Zour refinery, which increased the country’s total refining capacity to 1.42 million b/d. The refinery’s production, excluding liquefied petroleum gas (LPG), averaged 1.21 million b/d, a 22% increase from 2023, marking the highest output.¹⁰

The Al-Zour refinery reached full capacity after overcoming technical issues throughout 2023. Its fuel oil production rose by 51% in 2024, and at full capacity, it could produce between 11 and 12 million tons per year of very-low sulfur fuel oil (VLSFO). Other fuel production also increased, including a 24% rise in naphtha, an 18% rise in diesel, and a 12% rise in kerosene. However, gasoline production fell by 4%, possibly due to an issue at one of the reformers.¹⁰    

The rise in refined product production translated into a 28% increase in exports, averaging 968,000 b/d. Exports of fuel oil, primarily VLSFO, rose by 44%, and gasoil exports grew by 40%.¹⁰

Key Players in Kuwait's Mining Sector

Kuwait's petroleum sector is managed by several key organizations, including the KPC, the Ministry of Oil, and the Supreme Petroleum Council (SPC).

KPC's subsidiaries include Kuwait Oil Co. (KOC), responsible for crude petroleum and natural gas exploration; Kuwait Gulf Oil Co., overseeing operations in the Partitioned Neutral Zone with Saudi Arabia; Petrochemical Industries Co., dominant in fertilizer manufacturing; Kuwait Integrated Petroleum Industries Company (KIPIC), which operates and manages the integrated Al Zour refinery and petrochemicals complex; and Kuwait National Petroleum Co. (KNPC), which operates the country's refineries.

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The Kuwait Investment Authority holds stakes in cement companies, while private firms like ACICO Group and United Steel Industrial Co. are active in industrial minerals and metals.^5,7

Innovative Technologies

KOC was awarded the Innovative Technology Initiative of the Year at the Asian Oil & Gas Awards 2024 for using rigless electrical submersible pumps (ESP) technology, specifically Zilift technology. This novel technology enables ESP deployment without requiring a rig using telescoping cables and TECLine Cable. The innovation eliminates the need for a crane, making it ideal for challenging well installations.¹¹

KOC successfully deployed the rigless ESP on a well shut since August 2021 due to failed activation attempts and pressure issues. The new method significantly reduced installation time, with the system being installed within one to two days without compromising well integrity. This successful deployment boosted production and set a new standard for overcoming well challenges in the oil sector. KOC’s innovative approach enhances the ability to address complex operational issues in hard-to-reach wells.¹¹

Kuwait is modernizing its downstream operations through innovative strategies, enhanced safety, and business optimization. KOC has completed pilot projects to digitalize oil fields, implementing advanced technologies to remotely monitor and control fields in North, South, West, and East Kuwait.

The Kuwait Integrated Digital Field (KwIDF) project connects 1,000 fields, covering about 50% of KOC's oil fields. KOC plans to digitalize all its fields. However, due to its size and complexity, digitalizing the Burgan field will require careful planning, advanced technology, and robust project management.¹²

Policy Framework

Kuwait’s hydrocarbons policy is developed and overseen by the SPC, which is led by the prime minister and includes ministers, private sector representatives, and heads of key institutions like the Central Bank of Kuwait and the KPC.

The Ministry of Oil handles day-to-day regulation and the implementation of policies set by the SPC.¹³

Private investment is prohibited in Kuwait's upstream oil and gas sectors, but foreign investors can participate in activities such as consulting, engineering, procurement, construction, and secondary recovery systems.

A 2015 decree reaffirmed that foreign investment is restricted in upstream oil and gas activities, including crude petroleum extraction, natural gas extraction, gas manufacturing, fuel distribution, and fertilizer production.¹³

The Kuwait Direct Investment Promotion Authority, which limits foreign participation in the country's oil and gas sector, further enforced these restrictions.

In late 2022, the United States Department of Commerce highlighted that Kuwait’s plans for expanding heavy oilfield and offshore production will likely create significant opportunities for international investment over the next decade.¹³

Kuwait’s economy is structured around the production and refining of oil and petroleum products.  Kuwait’s recent economic strategies emphasize industrial and economic diversification to reduce reliance on hydrocarbons. This move has become increasingly urgent with the global shift toward clean energy.

New Kuwait 2035, the government's economic blueprint, centers the oil and gas sector as the driving force behind diversification. The plan aims to boost hydrocarbon production to fund development across various sectors.¹³

Developing known non-associated natural gas deposits would increase the country's natural gas supply. The country is likely to continue expanding its petroleum production capacity to emerge as one of the strongest economies in the world. KPC will invest $410 billion by 2040 for energy transformation, funded by cash flow, debt, and joint ventures.¹³

Challenges and Opportunities in Kuwait's Mining Landscape

Kuwait’s oil and gas industry faces challenges from aging fields, like Greater Burgan, and a lack of foreign investment. Unlike the United Arab Emirates and Saudi Arabia, which are near their production targets, Kuwait remains far from its goal. Foreign investment is crucial for developing new fields and revitalizing aging ones.¹⁴

In January 2024, KPC launched a $30 billion investment plan to increase oil production by 40%. KPC is expanding its focus beyond onshore reserves by exploring a 6,000-square-kilometer offshore area. KOC has already made significant discoveries, including the 74-square-kilometer Al-Jlaiaa field and the Al-Nokhatha field, which could hold 2.1 billion barrels of oil and 5.1 tcf of natural gas. These discoveries could create new business opportunities. For instance, KOC has signed a contract with a US company to drill 141 new wells.¹⁵

Future Outlook

Kuwait's hydrocarbon revenue will remain vital to its economy, but it is crucial to balance oil income with private and foreign investment.

New technologies and downstream diversification offer investment opportunities. While privatization is likely, efforts to localize the workforce will ensure that the oil and energy sectors continue to drive prosperity.    

References and Further Reading

1. Kuwait [Online] Available at https://www.cia.gov/the-world-factbook/countries/kuwait (Accessed on 10 April 2025)
2. GDP (current US$) – Kuwait [Online] Available at https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=KW&view=map&year=2023 (Accessed on 10 April 2025)
3. Oil and Gas market in Kuwait [Online] Available at https://www.tradecommissioner.gc.ca/kuwait-koweit/market-reports-etudes-de-marches/0007197.aspx?lang=eng (Accessed on 10 April 2025)
4. Kapoor, P. (2024) Kuwait: Noukhatha discovery adds substantial volume to oil reserves [Online] Available at https://www.oilandgasmiddleeast.com/news/kuwait-noukhatha-discovery-adds-substantial-volume-to-oil-reserves (Accessed on 10 April 2025)
5. Oil and Gas [Online] Available at https://www.trade.gov/country-commercial-guides/kuwait-oil-and-gas (Accessed on 10 April 2025)
6. Kuwait [Online] Available at https://www.eia.gov/international/analysis/country/KWT (Accessed on 10 April 2025)
7. Szczesniak, P. A. The Mineral Industry of Kuwait [Online] Available at https://pubs.usgs.gov/myb/vol3/2020-21/myb3-2020-21-kuwait.pdf (Accessed on 10 April 2025)
8. Kuwait Crude Oil: Production [Online] Available at https://www.ceicdata.com/en/indicator/kuwait/crude-oil-production (Accessed on 10 April 2025)
9. Kuwait [Online] Available at https://oec.world/en/profile/country/kwt (Accessed on 10 April 2025)
10. Kuwait produces, exports record oil products in 2024 [Online] Available at https://www.argusmedia.com/en/news-and-insights/latest-market-news/2659800-kuwait-produces-exports-record-oil-products-in-2024 (Accessed on 10 April 2025)
11. Kuwait Oil Company Has Received an Innovative Technology in the Rigless ESP Category [Online] Available at https://www.ciobulletin.com/oil-and-gas/kuwait-oil-company-rigless-esp-oil-asian-oil-and-gas-awards (Accessed on 10 April 2025)
12. Kuwait Digitalizes Oil Fields [Online] Available at https://www.trade.gov/market-intelligence/kuwait-digitalizes-oil-fields (Accessed on 10 April 2025)
13. New technology in Kuwait's energy sector creates investment opportunities [Online] Available at https://oxfordbusinessgroup.com/reports/kuwait/2024-report/energy-utilities/power-play-the-implementation-of-new-technologies-provides-investment-potential-overview/ (Accessed on 10 April 2025)
14. Gnana, J. (2024) Kuwait's upstream sector sees room for growth amid sweeping political changes [Online] Available at https://www.spglobal.com/commodity-insights/en/news-research/latest-news/crude-oil/051624-kuwaits-upstream-sector-sees-room-for-growth-amid-sweeping-political-changes (Accessed on 10 April 2025)
15. Domat, C. (2025) Kuwait Doubles Down On Oil Infrastructure And Investment [Online] Available at https://gfmag.com/economics-policy-regulation/kuwait-doubles-down-oil-infrastructure-and-investment/ (Accessed on 10 April 2025)

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