Yes. Kuwait has a long-established, mature, and globally significant upstream oil and gas industry, which is entirely state-owned and centrally managed. All upstream activities are conducted through the Kuwait Petroleum Corporation (KPC) and its subsidiaries, principally the Kuwait Oil Company (KOC), which is responsible for exploration and production within Kuwait’s territory.

The constitutional framework is anchored in Article 21 of the 1962 constitution, which provides that all natural resources are the exclusive property of the State. This position is reinforced by Law No. 6 of 1980, under which KPC holds a statutory monopoly over the management and exploitation of hydrocarbon resources.

Current Production Levels (as of late 2025)

• Crude oil production capacity is approximately 3.2 million barrels per day (bpd), representing the highest assessed capacity in more than a decade.
• Actual crude oil production is regulated under OPEC+ agreements and set at approximately 2.58 million bpd for December 2025.
• Natural gas production reached a peak of approximately 2.07 billion cubic feet per day (bcf/d) during 2025, marking a record level.

Oil and Gas Reserves

• Kuwait’s crude oil reserves are approximately 101.5 billion barrels, ranking as the 6th largest proven oil reserves in the world.
• Natural gas reserves are approximately 63 trillion cubic feet (tcf), ranking Kuwait among the top 20 countries worldwide for proven natural gas reserves.

Overall, Kuwait’s upstream sector remains one of the most significant in the region, characterized by strong state control, substantial reserves, and sustained investment in production capacity and resource development.

In Kuwait, the rights to explore and exploit oil and gas resources are strictly regulated by the state. Under Article 21 of the Kuwaiti Constitution, all-natural resources, including hydrocarbons, are the exclusive property of the State. The State exercises these rights directly through the Kuwait Petroleum Corporation (KPC) and its wholly owned subsidiaries, primarily the Kuwait Oil Company (KOC) for onshore operations and the Kuwait Gulf Oil Company (KGOC) for operations in the Partitioned Neutral Zone offshore.

The upstream regulatory regime is centralized and uniform, with KPC and its subsidiaries overseeing all exploration, development, and production activities. Foreign or private entities cannot independently hold upstream rights but may participate through service contracts, joint ventures, or technical support agreements.

This regime is the same for both onshore and offshore operations, including Kuwait’s share of the Partitioned Neutral Zone, though offshore operations in the Neutral Zone are conducted under bilateral arrangements with Saudi Arabia.

Structure of the regulatory regime
The upstream regulatory regime in Kuwait is a state-led, hierarchical system designed to maintain absolute national control over its hydrocarbon resources. In 2025, this structure remains centralized, with the following key entities governing every aspect of the sector:

1. Supreme Petroleum Council (SPC)
The Supreme Petroleum Council (SPC) is Kuwait’s highest oil authority and final decision-maker for all major energy policies and contracts. Chaired by the Prime Minister, it oversees the 2035 production goals and ensures all sector activities align with national interests. While KPC and KOC handle operations, the SPC holds ultimate veto power, requiring its explicit approval for any large-scale investment or strategic partnership.

2. Ministry of Oil
The Ministry of Oil regulates upstream projects from a policy and licensing perspective. It is responsible for approving exploration and development plans, overseeing technical compliance, and coordinating with other governmental agencies.

3. Kuwait Petroleum Corporation (KPC)
KPC is the state-owned holding company responsible for managing and overseeing all upstream and downstream activities in Kuwait. It sets strategic policies, approves investment plans, and supervises subsidiaries involved in exploration, development, and production.

4. Kuwait Oil Company (KOC)
KOC, a subsidiary of KPC, is the primary operator for upstream activities. It holds full legal and operational control over exploration, drilling, development, and production of hydrocarbons. All field operations, including technical and operational decisions, are conducted under KOC’s authority.

5. Central Agency for Public Tenders (CAPT)
CAPT historically facilitated the procurement and tendering process for foreign contractors participating in upstream projects. Recent reforms, effective October 2025, have allowed foreign firms to bid directly for Technical Service Agreements (TSA/ETSA) without requiring a local Kuwaiti agent.

The regulatory framework in Kuwait for oil and gas is unique because it strictly prohibits the concessions or production-sharing agreements (PSAs) common in other regions. In Kuwait, the exploration, development, and production of oil and gas are governed by a framework that reflects the State’s exclusive ownership of natural resources, as provided under Article 21 of the Kuwaiti Constitution. All oil and gas reserves belong to the State, meaning no company, local or foreign, can hold equity in the hydrocarbons themselves.

The primary entity responsible for upstream operations is the Kuwait Oil Company (KOC), a subsidiary of the state-owned Kuwait Petroleum Corporation (KPC). KOC retains full legal and operational control over all exploration, development, and production projects within the country. Local companies or state entities undertake these operations directly, using internal resources, personnel, and technology. They are fully responsible for field management, production, and compliance with regulatory requirements.

Kuwait’s oil and gas E&P (Exploration & Production) features state control via Kuwait Petroleum Corporation (KPC) and Kuwait Oil Company (KOC), focusing on massive onshore/offshore finds, deep drilling, strong digitalization for efficiency, developing heavy oil, and transitioning to lower carbon intensity while boosting capacity, utilizing advanced seismic tech, and integrating EPC, specialized services, and downstream refining.

In any exploration or development project, the KOC remains the legal and operational owner. Even when a foreign firm is deeply involved in a project, such as the massive offshore exploration campaign currently yielding major discoveries like the Al-Jazah field in late 2025, the drilling rigs and the resulting hydrocarbons remain under KOC’s name.

Kuwait Oil Company (KOC) handles the domestic upstream arm, responsible for all exploration and production within Kuwait. Kuwait National Petroleum Company (KNPC), manages domestic refining and petroleum product marketing. Kuwait Petroleum International (KPI/Q8), handles international refining and marketing, primarily in Europe and Asia. Kuwait Foreign Petroleum Exploration Company (KUFPEC), conducts oil and gas exploration and production outside of Kuwait. Kuwait Integrated Petroleum Industries Company (KIPIC), operates the major Al-Zour integrated refining, petrochemicals, and LNG import complex.

The foreign firm acts as a technical partner, providing the seismic interpretation and drilling expertise that KOC may not yet possess internally for deep-sea operations.

As of 2025, Kuwait’s upstream oil and gas sector remains focused predominantly on conventional hydrocarbon resources. These include large onshore reservoirs, such as Burgan, Raudhatain, and Sabriyah, as well as offshore fields including Al-Jazah.

Kuwait is actively engaged in the exploration and potential future development of unconventional hydrocarbon resources, such as shale gas and tight oil, but the commercial production of these resources is not yet widespread.

Development of Unconventional Resources

The Najmah Formation (Jurassic) and Makhul Formation (Cretaceous) are identified as the primary unconventional targets. The Najmah formation is particularly significant, characterized by highly over-pressured, organic-rich shale that is already considered a commercially viable unconventional resource in Kuwait.

On June 15, 2025, the Mutriba Field in Northwest Kuwait officially entered the commercial production phase. This field is a major milestone in KOC’s effort to produce oil from unconventional fields and geologically complex reservoirs, spanning more than 230 square kilometres.

Kuwait is aggressively expanding its Jurassic gas production, which involves deep, high-pressure, high-temperature (HPHT) tight reservoirs. In 2025, KOC commissioned and kicked off projects for Jurassic Production Facilities (JPF) 4 and 5, which are designed to handle non-associated gas and light oil from these complex formations.

Through the Kuwait Foreign Petroleum Exploration Company (KUFPEC), Kuwait also holds stakes in international unconventional assets.

Regulatory Framework

There is currently no separate regulatory regime specifically for unconventional resources. Any exploration, development, or production activity involving unconventional hydrocarbons would be governed under the same state-controlled legal and contractual framework applicable to conventional oil and gas operations. All hydrocarbons, conventional or unconventional, are the property of the State.

The Supreme Petroleum Council (SPC) and the Ministry of Oil remain the ultimate authorities, with KOC serving as the sole domestic operator for both conventional and unconventional onshore activities.

To manage the high technical risks and advanced technology required for unconventional extraction (such as multi-stage fracturing and CO2 acid fracturing), KOC uses Enhanced Technical Service Agreements (ETSAs) and Lump-Sum Turnkey (LSTK) contracts to partner with international firms.

The upstream oil and gas sector in Kuwait is heavily regulated by state-owned entities and relevant government authorities, reflecting the State’s constitutional ownership of all hydrocarbon resources. The key regulators include:

1. Supreme Petroleum Council (SPC)
The Supreme Petroleum Council (SPC) serves as the ultimate authority and sovereign gatekeeper for Kuwait’s oil and gas sector. As the highest decision-making body in the industry, its primary mandate is to formulate and approve the nation’s high-level petroleum policies. Because oil is the cornerstone of the Kuwaiti economy, the SPC ensures that every major move made in the energy sector aligns perfectly with the state’s broader economic and political interests.

It is traditionally chaired by the Prime Minister and includes key government figures such as the Ministers of Oil, Finance, and Foreign Affairs, as well as the Governor of the Central Bank. This composition ensures that energy decisions are integrated with the nation’s fiscal policy, foreign relations, and financial stability.

One of the most important functions of the SPC is its role as the final approving body for major contracts and investments. While operational entities like the Kuwait Petroleum Corporation (KPC) or the Kuwait Oil Company (KOC) may design projects or propose partnerships with international firms, they lack the legal authority to commit significant national funds or sign off on large-scale production agreements independently.

2. Ministry of Oil (MOO)
Ministry of Oil (MOO) serves as the administrative and diplomatic backbone of the energy sector, acting as the primary executor of state policy. While the Supreme Petroleum Council (SPC) provides the overarching vision, the Ministry is tasked with the practical implementation of those goals. This involves overseeing the Kuwait Petroleum Corporation (KPC) to ensure that its operational subsidiaries remain in compliance with national laws and the state’s long-term economic objectives, such as the roadmap to increase production capacity to 4 million barrels per day.

On the international stage, the Ministry functions as Kuwait’s diplomatic voice for energy. The Minister of Oil represents the nation within OPEC and the OPEC+ alliance, where they play a crucial role in negotiating production quotas and output strategies.

Beyond policy and diplomacy, the Ministry holds a critical regulatory and supervisory mandate. It is responsible for monitoring the technical integrity of drilling and exploration activities to ensure the efficient recovery of resources.

3. Kuwait Petroleum Corporation (KPC)
Kuwait Petroleum Corporation (KPC) is the state-owned holding company that acts as the commercial heart of Kuwait’s energy industry. It unified all of Kuwait’s oil interests under a single corporate umbrella to ensure an integrated approach to managing the nation’s primary resource.

KPC manages Kuwait’s hydrocarbon interests across six continents. While its headquarters are in Kuwait city, it maintains strategic international offices in cities like London, Houston, Mumbai, Singapore, and Tokyo to execute its global sales and marketing strategies. This global reach allows KPC to supply 7% of the world’s total crude oil and maintain a presence in every aspect of the industry, from upstream exploration to downstream refining and marine transportation.

KPC provides financial support and strategic direction to its eight wholly owned subsidiaries, often referred to as the “K-Companies”. By coordinating between these entities, KPC ensures a seamless value chain.

Through this centralized structure, KPC acts as a secure and reliable global supplier while fostering local private sector participation in the downstream industry and investing in the development of Kuwait’s national workforce.

4. Kuwait Oil Company (KOC)
As the primary upstream subsidiary of the Kuwait Petroleum Corporation (KPC), the Kuwait Oil Company (KOC) serves as the operational engine of the country’s energy sector. It has exclusive responsibility for all exploration, drilling, and production activities within Kuwait’s sovereign borders. Unlike many other oil-producing nations that allow multiple private companies to operate fields, Kuwait mandates that KOC retains sole control over the extraction process to safeguard national interests and resource conservation.

KOC also serves as the primary interface for international expertise through its management of Technical Service Agreements (TSAs). Since Kuwaiti law prohibits foreign ownership of oil reserves, KOC acts as the legal and operational host for International Oil Companies (IOCs) such as Shell, BP, and Total Energies. Through these agreements, KOC leverages the advanced technology and management practices of global firms to optimize production at complex fields while ensuring that the actual oil produced remains 100% state-owned.

5. Kuwait National Petroleum Company (KNPC)
KNPC serves as the operational arm of the Kuwait Petroleum Corporation, overseeing Refining, Gas Processing, and Local Marketing of Petroleum Products. Additionally, it holds ownership of Kuwait Aviation Fuel Supply Company (KAFCO) and has a 60% stake in Kuwait Aromatics Company (KARO).

Gas Processing is a crucial aspect of Kuwait National Petroleum Company’s operations, with ownership of a gas processing plant at Mina Al-Ahmadi Refinery inaugurated in 1978. Presently, the plant comprises 5 trains with a production capacity of 3.1 billion standard cubic feet of gas and 332,000 of condensate BPD.

The Company distributes a range of petroleum products to the local market through Subhan and Al-Ahmadi Depots, along with 61 fuel Filling Stations. Additionally, 6 Mobile Stations have been established to address the demand in emerging areas.

The Company manages 5 Ports and Facilities dedicated to Shipping and Exporting petroleum products. These include the Northern and Southern Piers at Mina Al-Ahmadi Refinery, the New Pier at Mina Al-Ahmadi Refinery, The Oil berth in Shuaiba, and the Sea Island at Mina Abdullah Refinery.

6. Petrochemical Industries Company (PIC)
PIC, a subsidiary of Kuwait Petroleum Corporation (KPC), has led the petrochemical industry since 1963. As the first regional producer of fertilizers, PIC established a legacy of innovation. Over six decades, PIC has contributed significantly to Kuwait’s economic diversification, with a global reach, 60% of our production is distributed internationally. PIC’s success is driven by strategic global partnerships and a diverse portfolio in Polymers, Aromatics, and Fertilizers.

7. The Kuwait Oil Tanker Company (KOTC)
KOTC serves as the specialized maritime logistics arm of the state-owned Kuwait Petroleum Corporation (KPC), ensuring the global delivery of Kuwait’s hydrocarbon exports. Operating a modern fleet of approximately 31 to 32 vessels, including Very Large Crude Carriers (VLCCs), product tankers, and Liquefied Petroleum Gas (LPG) carriers, the company provides vital strategic coverage for Kuwait’s oil and gas sectors across international markets. Beyond its international shipping operations, KOTC maintains a critical domestic role by managing the filling and distribution of LPG cylinders for local industry and residential use through its plants in Shuaiba and Umm Al-Aish.

8. Kuwait Integrated Petroleum Industries Company (KIPIC)
KIPIC, a subsidiary of the Kuwait Petroleum Corporation (KPC), serves as the operator of the Al-Zour Integrated Petroleum Complex. This massive industrial site is designed to integrate refining, petrochemical production, and liquefied natural gas (LNG) imports to maximize the value of Kuwait’s natural resources. The complex features the Al-Zour Refinery, which is one of the world’s largest grassroots refineries with a capacity of 615,000 barrels per day, specifically configured to produce low-sulphur fuel oil to supply domestic power plants and high-quality petroleum products for international export.

The company also operates a world-class LNG Import Facility consisting of eight tanks with a total capacity of 3,000 billion BTUs per day, ensuring a stable supply of natural gas for Kuwait’s energy needs.

9. Kuwait Petroleum International (KPI)
KPI, operating under the global brand Q8, serves as the international downstream arm of the Kuwait Petroleum Corporation. Its primary role in 2026 is to secure stable global outlets for Kuwaiti crude oil by managing a massive network of over 4,800 retail fuel stations across Europe and Asia, alongside three world-class refineries. Through Q8Aviation, the company also remains a leading supplier of jet fuel, serving over 80 major international airports worldwide.

10. Kuwait Foreign Petroleum Exploration Company (KUFPEC)
KUFPEC, the international upstream subsidiary of the Kuwait Petroleum Corporation (KPC), is focused on achieving a production target of 139,300 barrels of oil equivalent per day (boepd). Operating in approximately nine to ten countries across five continents, the company has shifted its strategy toward ‘exploration-led growth’ and high-yield acquisitions, particularly in gas and liquefied natural gas (LNG) assets, which now comprise roughly 76% to 80% of its global portfolio. This shift is part of a broader effort to diversify KPC’s income sources and enhance technical capabilities for Kuwait’s domestic oil sector through international partnerships with major energy firms.

11. Kuwait Gulf Oil Company (KGOC)
KGOC, a subsidiary of the Kuwait Petroleum Corporation (KPC), manages Kuwait’s interests in the Partitioned Zone (PZ) shared equally with Saudi Arabia. Operating through two joint ventures- Wafra Joint Operations (WJO) onshore with Saudi Arabian Chevron and Khafji Joint Operations (KJO) offshore with Aramco Gulf Operations- KGOC is focused on a strategic production increase.

12. Central Agency for Public Tenders (CAPT)
The Central Agency for Public Tenders (CAPT) is Kuwait’s central authority for government procurement, operating under the council of ministers. It acts as a gatekeeper to ensure that multi-million dollar public projects are awarded through a fair, transparent, and competitive process rather than through direct appointments.

Generally, any government contract for goods, works, or services exceeding 75,000 KD must be processed through CAPT. Projects below this amount are usually managed directly by the specific ministry’s own procurement unit.

While the Kuwait Petroleum Corporation (KPC) and its subsidiaries have their own internal procurement units for smaller projects, CAPT specifically oversees their major typical procurement contracts exceeding 5 million KD. Specialized services like oil well drilling and maintenance are handled internally by KPC rather than CAPT. CAPT ensures transparency by managing tender announcements, pre-tender meetings, and the final awarding of contracts to qualified bidders.

13. Other Supporting Authorities
Depending on the project, additional approvals may be required from bodies such as the Ministry of Commerce and Industry, Ministry of Communication – Technical Affairs, Kuwait Municipality, and Fire Department, particularly for project-specific permits and site authorizations.

Yes, the Kuwaiti government is directly and comprehensively involved in the upstream oil and gas sector. This involvement is rooted in Article 21 of the Kuwaiti Constitution, which establishes that all natural resources, including hydrocarbons, are the exclusive property of the State. As a result, the government maintains full ownership, control, and oversight over all upstream operations.

Government-Owned Oil and Gas Company

The primary government-owned entity in the upstream sector is the Kuwait Petroleum Corporation (KPC). KPC is a state-owned holding company responsible for supervising and managing the entire oil and gas value chain in Kuwait, including exploration, development, production, and export of hydrocarbons.

1. The State-Owned Monopoly: Kuwait Petroleum Corporation (KPC)
Kuwaiti oil and gas industry remains a total state monopoly, governed by a single, massive government-owned entity: the Kuwait Petroleum Corporation (KPC). Established by the state to unify its energy interests, KPC acts as the commercial and operational parent company for the entire sector. Because the Kuwaiti Constitution prohibits private or foreign ownership of natural resources, the government must manage all exploration and production through this centralized holding company. KPC is responsible for everything from extracting crude oil from the desert to selling refined gasoline at stations in Europe and Asia, making it one of the most powerful and integrated state-owned energy companies in the world.

KPC serves as the umbrella organization that oversees the nation’s primary source of wealth. As a government-owned holding company, it translates the high-level policies of the Supreme Petroleum Council into daily operations. In 2025, KPC is the primary driver of Kuwait’s ‘Strategy 2040,’ which aims to optimize the value of every barrel produced while pushing for a production capacity of 4 million barrels per day by 2035. By controlling the entire value chain, KPC ensures that the profits from oil sales go directly into the state treasury to fund the national budget, infrastructure, and social services.

2. Kuwait Oil Company (KOC): The Upstream Engine
The most critical government-owned subsidiary under the KPC umbrella is the Kuwait Oil Company (KOC). Founded in 1934 and fully nationalized by 1975, KOC is exclusively responsible for all onshore and offshore exploration, drilling, and production within Kuwait’s borders. In 2025, KOC is managing massive projects, including the historic Al-Jazah offshore gas discovery and the development of deep, unconventional Jurassic fields. Because no other company is legally allowed to extract oil in Kuwait, KOC acts as the sole operator, ensuring that the state maintains absolute control over the extraction process and the technical integrity of its reservoirs.

3. Kuwait Gulf Oil Company (KGOC): Joint Sovereign Management
For operations in the unique Partitioned Neutral Zone (PNZ) shared with Saudi Arabia, the government utilizes the Kuwait Gulf Oil Company (KGOC). This specialized state-owned subsidiary represents Kuwait’s 50% interest in the shared onshore and offshore fields of the zone. In 2025, KGOC works in close partnership with Saudi Aramco to manage production in a way that respects the bilateral treaties between the two nations. This allows the Kuwaiti government to exploit shared resources while maintaining a dedicated state entity to protect its specific sovereign rights and production quotas in the region.

4. KUFPEC: The Global Investment Arm
The government also extends its ownership beyond its own borders through the Kuwait Foreign Petroleum Exploration Company (KUFPEC). This wholly owned subsidiary of KPC engages in oil and gas exploration and production in international markets, including projects in Australia, Canada, and Southeast Asia. By owning a company that operates globally, the Kuwaiti government can diversify its energy portfolio, gain access to international technical expertise, and generate additional revenue from foreign assets. KUFPEC ensures that even when Kuwait invests abroad, those investments remain under the direct control and ownership of the Kuwaiti state.

Yes. Foreign oil and gas companies face significant restrictions and specific requirements when participating in Kuwait’s upstream industry, largely due to the constitutional and legal framework that establishes state ownership of all hydrocarbons. As a result, foreign companies are not permitted to acquire equity or ownership in hydrocarbons or upstream fields.

Foreign oil and gas companies can participate only as specialized technical service providers under the Technical Service Agreement (TSA) or its advanced form, the Enhanced TSA (ETSA). Under these agreements, foreign firms provide high-end technology, expert personnel, and management systems required to operate complex reservoirs or technically challenging fields. Foreign entities participate only as highly specialized service providers rather than equity partners.

The Technical Service Agreement (TSA) and ETSA

The most advanced form of engagement in 2025 is the Enhanced Technical Service Agreement (ETSA). Under this model, an International Oil Company (IOC), such as Shell, BP, or Total Energies, is hired as a consultant-operator. The key feature of this contract is that the IOC provides the high-end technology, management systems, and specialized personnel required to manage complex reservoirs (like the high-pressure Jurassic gas fields or heavy oil fields) in exchange for a cash fee.

The key features of Kuwait’s upstream contractual framework, particularly under ETSA, are as follows:

• IOCs are paid cash fees for their services, often performance-based, without any entitlement to a share of the hydrocarbons. Performance incentives are tied to production targets or operational efficiency improvements.
• The Kuwait Oil Company (KOC) retains full legal and operational control of all projects. Foreign firms act as technical partners, providing expertise but not assuming ownership.
• Foreign companies can bid directly for service contracts without a local Kuwaiti agent and may establish local branches to execute projects, streamlining the process and reducing intermediary costs. (Law No. 1 of 2024)
• Service contracts require a significant proportion of the workforce to be Kuwaiti nationals (Kuwaitization) and mandate that a portion of contract expenditures (typically ≥30%) is spent on local goods and services.
• Technical and operational risks are borne by the foreign contractor, while rewards are strictly financial, ensuring alignment of performance with the State’s interests.
• Unlike many other countries, Kuwait does not use concession agreements or production-sharing contracts, maintaining strict state control over all upstream resources

These requirements ensure that foreign participation remains strictly technical and service-based, while full ownership, control, and strategic decision-making over upstream resources remain with the State.

Upstream oil and gas operations in Kuwait are subject to a comprehensive Environmental and Health and Safety (EHS) framework, enforced through national laws and the internal standards of state-owned companies, primarily by the Ministry of Oil (MoO), the Environment Public Authority (EPA), and other regulatory bodies. The regime covers environmental protection, occupational health, and workplace safety.

The Environment Public Authority (EPA) oversees compliance with the Environment Protection Law (No. 42 of 2014), setting standards for air quality, waste management, water treatment, and marine protection. The Public Authority for Manpower (PAM) enforces occupational health and safety under the Private Sector Labour Law, ensuring worker protection and safe workplaces. The Kuwait Petroleum Corporation (KPC) and its subsidiary, the Kuwait Oil Company (KOC), maintain comprehensive HSSE management systems that contractors must follow.

Environmental protection

• Environmental Impact Assessments (EIA): Before any upstream project begins, companies must conduct an EIA and obtain approval from the EPA to ensure the project meets national ecological standards.
• Gas Flaring and Emissions: Kuwait has strict targets to reduce gas flaring to less than 1%. Under the 2050 Carbon Neutrality Strategy, there is a heavy focus on reducing methane leaks and carbon intensity.
• Waste and Water Management: The regime mandates the treatment of ‘produced water’ from drilling. Hazardous waste must be tracked, stored, and disposed of at state-approved facilities.

Health and safety

Health and safety standards require companies to mitigate risks through safety audits, emergency drills, and certified equipment. Regulations cover occupational health issues such as extreme heat, noise, and chemical exposure. Foreign contractors must comply with KOC’s internal HSSE standards, which often exceed national requirements, and provide specialized PPE and safety training to all staff.

• The Occupational Safety and Health are related ministerial regulations set standards for workplace safety, risk management, and employee protection.
• Contractors must implement safety management systems, conduct regular risk assessments, and provide training for staff on emergency response, personal protective equipment (PPE), and hazardous operations.
• Reporting of workplace incidents, injuries, or near misses is mandatory, and investigations must follow MoO and EPA protocols.

Recent strategic shifts include integration of renewable energy solutions into operations and adoption of digital monitoring systems for emissions and site safety metrics, reported to KPC and the EPA.

The Kuwaiti government derives nearly all its value from oil and gas resources through direct state ownership and subsequent sale of the hydrocarbons, rather than traditional royalties or production-sharing agreements (PSAs) with foreign companies.

The Kuwaiti Constitution dictates that all natural resources belong to the state, and foreign companies are constitutionally barred from owning equity or production rights in the country’s oil fields. The state-owned enterprise, Kuwait Petroleum Corporation (KPC), manages and controls all upstream and downstream activities, with the Kuwait Oil Company (KOC) acting as the primary operator.

There is no upstream royalty, production-sharing mechanism, or corporate tax on upstream activities in Kuwait. Similarly, there are no special tax deductions or incentives for upstream oil and gas investment, as all revenues accrue directly to the State. Incentives, where relevant, may apply only to service contractors or foreign investors in non-upstream sectors through contractual arrangements or investment laws.

The government’s main tax revenue from the sector comes from a flat 15% Corporate Income Tax levied exclusively on the profits of foreign companies operating in Kuwait. Kuwaiti-owned companies are exempt from this tax. Foreign firms operating under Technical Service Agreements (TSAs) or Enhanced Technical Service Agreements (ETSAs) are paid a fee for their services and expertise and are then taxed on the profits of that fee-based income.

Income derived from operations in the Kuwait-Saudi Neutral (Divided) Zone is taxed at a specific rate of 30%, with a provision for a 50% reduction if taxes have already been paid to Saudi Arabia.

Tax Deductions and Incentives

• Under the Kuwait Direct Investment Promotion Authority (KDIPA) law, approved foreign investors in certain strategic sectors (including energy services) may be granted specific incentives, which can include a tax holiday for a maximum of 10 years.
• Foreign companies can claim standard business expense deductions, though these are subject to stringent tax authority inspections, and there are specific rules for things like employee costs and related-party transactions.
• For large multinational enterprises, Kuwait has introduced a Domestic Minimum Top-Up Tax of 15% effective from January 1, 2025, but it also offers transitional ‘safe harbour’ reliefs for qualifying groups, a form of incentive for compliance.
• Companies may be able to claim credits for foreign taxes paid in other jurisdictions, depending on specific double taxation agreements between Kuwait and their home country.

Kuwait maintains strict controls over oil and gas exports, along with robust local content and domestic supply mandates to safeguard its national economy and energy security. All crude oil and gas produced are state-owned, with control vested in the Kuwait Petroleum Corporation (KPC) and its upstream subsidiary, the Kuwait Oil Company (KOC).

KPC determines export volumes, destinations, and timing in accordance with national energy policies, market requirements, and international obligations. Foreign technical service providers are not authorized to sell or export oil or gas; their role is strictly technical and operational.

1. Export Restrictions

• All exports of crude oil and natural gas are exclusively managed by the state-owned Kuwait Petroleum Corporation (KPC) and its subsidiaries.
• Export volumes are subject to OPEC+ production quotas to ensure global market stability.
• Regional geopolitics, particularly the reliance on the Strait of Hormuz, imposes practical constraints on exports.

2. Local Content Obligations

• Foreign contractors are required under the Public Tenders Law (No. 49 of 2016) to source at least 30% of materials locally, when available.
• Price preference of 15% is granted to locally produced goods, favouring domestic suppliers in bidding.
• Kuwaitization requirements: Earlier, KPC contractors must employ at least 30% Kuwaiti nationals, with strategic plans to increase this to 60% for private oil and gas service providers. KOC aims for a fully Kuwaiti workforce by 2027-2028.

3. Domestic Supply Obligations

• Domestic production is prioritized for power generation and essential industries to meet rising local demand.
• The Kuwait National Petroleum Company (KNPC) holds exclusive rights for domestic distribution of LPG and refined products.
• The government sets fixed prices for domestic LPG to ensure affordability for industrial and residential use. The State decides the allocation of oil and gas for domestic consumption versus export.

Yes. The regulatory regime in Kuwait imposes specific decommissioning obligations on operators and contractors, primarily overseen by the Kuwait Oil Company (KOC) and the Ministry of Oil (MoO) and the national environmental laws enforced by the Environment Public Authority (EPA).

Environment Protection Law (No. 42 of 2014), mandates the restoration of project sites to their original environmental state. Article 27 specifically requires entities to manage hazardous waste and land remediation during the closure of industrial activities.

KOC Health, Safety, and Environment (HSE) MS, The Kuwait Oil Company (KOC) maintains a comprehensive Management System that includes specific procedures for the ‘Abandonment and Decommissioning’ of wells and facilities. These internal standards are often more detailed than national laws and are a mandatory part of any contract with a foreign service provider.

Specific Decommissioning Obligations

• Upon the completion of a project or the end of a field’s life, the operator is legally obligated to remove all surface equipment, plug wells according to technical safety standards, and remediate any soil or water contamination.
• All hazardous materials, including naturally occurring radioactive material (NORM) often found in oil equipment, must be disposed of at EPA-approved facilities.
• Decommissioning activities must comply with the Environmental Protection Law (No. 42 of 2014), including proper disposal of waste, treatment of produced water, and mitigation of soil, air, and marine impacts.
• For major decommissioning projects, an EIA must be submitted to the EPA to outline how the dismantling process will minimize ecological disruption.
• Operators must submit decommissioning plans and environmental impact reports for review and approval by KOC and the Environment Public Authority (EPA) before execution.
• Foreign contractors under TSA/ETSA agreements may be tasked with providing technical services for decommissioning, but legal ownership and final approvals remain with KOC/KPC.
• KOC often requires contractors to maintain financial guarantees (performance bonds) that can be utilized by the state if the contractor fails to meet its site restoration or cleaning obligations.

Environmental Remediation Program (KERP)

Following the massive environmental damage from the 1991 oil fires, Kuwait established one of the world’s largest remediation programs. This has led to the development of highly specific technical standards for soil remediation and oil sludge treatment that now apply to all modern decommissioning activities.

As Kuwait moves toward its 2035 production goals, the government is placing higher scrutiny on the ‘end-of-life’ plans for mature fields to ensure that new production technology does not leave behind unmanaged environmental liabilities.

The construction and operation of offshore oil and gas pipelines in Kuwait are governed by a specialized regulatory framework that integrates national environmental laws with the operational mandates of state-owned entities, that mandates adherence to national laws, international engineering codes, and the strict internal standards of state-owned entities.

1. Primary Regulatory Oversight

• Environmental Protection Law (No. 42 of 2014) – This is the foundation of the regulatory regime. It requires all offshore projects to submit a comprehensive Environmental Impact Assessment (EIA) to the Environment Public Authority (EPA) before construction. The law mandates continuous monitoring of marine water quality and prohibits any discharge that exceeds established chemical or thermal limits.
• Law No. 6 of 2010 (Private Sector Labour) – This law, overseen by the Public Authority for Manpower (PAM), governs offshore occupational health and safety. It includes specific requirements for offshore housing, medical facilities on barges, and mandatory safety certifications for all divers and marine crew.

2. KOC Technical and Engineering Standards

The Kuwait Oil Company (KOC) operates a dedicated Standards Team that develops in-house specifications which all foreign contractors must follow:

• Design & Construction: Pipelines must typically adhere to API 5L for pipe specifications and ASME B31.8 (Gas Transmission) or ASME B31.4 (Liquid Petroleum) for engineering design.
• Corrosion Protection: KOC has specific standards for subsea pipeline coatings (e.g., KOC-P-005 for internal liquid epoxy or fusion-bonded epoxy) to ensure longevity in the highly saline Arabian Gulf.
• Integrity Management: Regulations require the installation of piggable configurations (allowing for Internal Inspection Tools) and real-time leak detection systems that feed into KOC’s Production Excellence & Planning (PEP) dashboards.

3. Marine and Security Coordination

Offshore construction requires specific approvals from non-oil government bodies:

• Ministry of Communication (Marine Affairs): This body issues Marine Work Permits. They regulate the exact coordinates of subsea pipelines to ensure they do not conflict with existing telecommunication cables or designated commercial shipping lanes.
• Kuwait Coast Guard & Ministry of Interior: Under the Oil & Vital Protection Department, the Coast Guard establishes exclusion zones around construction barges and permanent subsea infrastructure to protect against security threats and accidental anchor damage.
• Kuwait Municipality: They must approve the ‘Coastal Landing’ points, ensuring that the transition from subsea to onshore pipelines complies with national urban planning and land-use laws.

4. Operational Obligations and Emergency Response

• Oil Spill Contingency Plans: Every offshore operator must have a site-specific emergency plan approved by the EPA. This includes a mandatory Oil Spill Response (OSR) contract with specialized marine clean-up firms.
• Commissioning Requirements: Before operation, pipelines must undergo rigorous hydrostatic testing and third-party inspection to verify weld integrity and cathodic protection performance.
• These regulations explain Kuwait’s environmental protection mandates and KOC’s internal engineering requirements for building and operating offshore oil and gas pipelines, covering design, materials, and operational integrity.

Kuwait does have an LNG import and regasification terminal at Al‑Zour, developed and operated by the state‑controlled entity Kuwait Integrated Petroleum Industries Company (KIPIC) as part of its strategic energy infrastructure. The Al‑Zour LNG import terminal includes large storage tanks and regasification facilities to receive LNG shipments, store LNG, and convert it back to gas for domestic use. The terminal has received LNG shipments (including from Qatar) and is designed to meet Kuwait’s growing demand for cleaner natural gas for power generation and industrial consumption.

There are no major LNG liquefaction plants in Kuwait for exporting LNG. The regulatory regime for LNG import terminals is primarily governed through government planning, approvals, and compliance with Kuwait’s general energy, environmental, and safety regulations. Construction and operation require government approvals and must adhere to applicable environmental and safety standards under national laws, including environmental impact considerations and industrial safety regulation.

• Kuwait Integrated Petroleum Industries Company (KIPIC): As a subsidiary of the state-owned Kuwait Petroleum Corporation (KPC), KIPIC is the dedicated regulator and operator for major downstream projects, including LNG terminals. It sets the internal technical, operational, and safety standards that all contractors must follow.
• Environment Public Authority (EPA): Enforces Law No. 42 of 2014, requiring rigorous Environmental Impact Assessments (EIA). For LNG terminals, the EPA specifically monitors thermal pollution (from seawater used in regasification), air emissions, and marine biodiversity protection.
• Ministry of Electricity, Water and Renewable Energy (MEW): Acts as the primary regulator for downstream gas distribution, ensuring the regasified LNG meets the technical specifications required for the national power grid.
• Fire and Security: The Kuwait Fire Force (KFF) and the Ministry of Interior oversee strict fire safety and facility security protocols, given the high-risk nature of cryogenic storage.
• Marine Regulation: The Ministry of Communication (Marine Affairs) regulates the ‘Port of Al-Zour,’ governing the arrival, docking, and safety of LNG carriers.

In Kuwait, the regulatory regime for non-LNG gas storage is governed under the broader hydrocarbon and energy sector framework, primarily overseen by the Ministry of Oil, the Supreme Petroleum Council, and state-owned entities such as the Kuwait Petroleum Regulatory Regime.

Kuwait Oil Company (KOC): As the upstream operator, KOC is the primary regulator for the technical design, injection, and withdrawal protocols of underground gas storage. They set the safety standards for wellhead integrity and reservoir pressure management.

Environment Public Authority (EPA): Under Law No. 42 of 2014, any gas storage activity, particularly underground injection, requires a specialized Environmental Impact Assessment (EIA). The EPA monitors for potential groundwater contamination and subsurface leaks (seepage).

Ministry of Oil: Provides high-level policy oversight and approves the strategic allocation of stored gas volumes to ensure national energy security.

Ministry of Electricity, Water and Renewable Energy (MEW): While not an operator, the MEW coordinates with KPC to determine the timing and volume of gas withdrawals required to fuel the national power grid.

There is no standalone legislation specifically for natural gas storage. Currently, Kuwait does not operate dedicated non-LNG gas storage facilities. Gas management is handled through production, processing, and boosting infrastructure, while the Al-Zour LNG terminal provides storage in LNG form, but this falls under LNG regulation, not conventional gas storage.

The Kuwait Oil Company (KOC) has developed strategic gas storage within the Jurassic gas fields in North Kuwait. This allows for the injection of surplus gas during periods of low demand (winter) and withdrawal during peak demand (summer).

Kuwait’s extensive national gas pipeline grid, managed by Kuwait National Petroleum Company (KNPC), is used for ‘line pack’ storage to manage short-term pressure and supply fluctuations for domestic power plants.

Yes. Kuwait has a gas transmission and distribution system, primarily managed by Kuwait National Petroleum Company (KNPC), which delivers natural gas for domestic power generation, industrial use, and local consumption.

Gas transmission and distribution infrastructure is fully state-owned and operated mainly by Kuwait National Petroleum Company (KNPC) under the oversight of the Kuwait Petroleum Corporation (KPC). The infrastructure is regulated within the national hydrocarbon and energy policy framework, which includes compliance with environmental, safety, and industrial standards, as well as alignment with government planning for domestic energy supply.

Transmission and Distribution Infrastructure

• Integrated National Grid: Kuwait operates an extensive cross-country network of high-pressure pipelines. This system transports ‘associated gas’ from oil fields and ‘non-associated gas’ (high-pressure sour gas) from the northern Jurassic fields to central processing plants.
• Hubs: The network connects the Al-Zour LNG Import Terminal and the Mina Al-Ahmadi Gas Plant to the country’s power stations and the Shuaiba Industrial Area. These hubs are critical for balancing domestic production with imported LNG to meet peak summer electricity demand.
• LPG Distribution: For residential and commercial use, Kuwait utilizes a specialized distribution system for Liquefied Petroleum Gas (LPG). Kuwait National Petroleum Company (KNPC) exclusively manages the bottling plants and the country-wide distribution of gas cylinders, ensuring a regulated supply and subsidized pricing for the local population

Kuwait does not have a formal third-party access regime for gas transmission or distribution infrastructure. All pipelines and distribution networks are fully state-owned and operated by entities such as the Kuwait National Petroleum Company (KNPC) under the oversight of the Kuwait Petroleum Corporation (KPC). Access to the network is strictly controlled by the state and primarily allocated to priority users, including domestic power plants, industrial consumers, and other strategic energy projects. Private or foreign parties may participate only as technical service providers for construction, maintenance, or engineering services under government-approved contracts, without acquiring operational control or ownership of the infrastructure.

In Kuwait, there is no competitive or privatized downstream gas market. Gas is supplied to end-users primarily through state-owned entities, such as the Kuwait National Petroleum Company (KNPC) under the oversight of the Kuwait Petroleum Corporation (KPC). End-customers, including industrial users and power plants, cannot choose their gas supplier, as the state controls allocation, distribution, and pricing of natural gas in accordance with national energy planning and strategic priorities.

The Kuwait National Petroleum Company (KNPC) is the sole supplier of fuel gas to power stations (managed by the Ministry of Electricity, Water and Renewable Energy) and major industrial users.

For the retail market, KNPC holds the exclusive mandate for the bottling and country-wide distribution of Liquefied Petroleum Gas (LPG) cylinders. As of late 2025, this distribution was further centralized to ensure national energy security.

No Alternative Suppliers: Customers, whether residential, commercial, or industrial, cannot choose their supplier. They are required by law to receive gas from the state-designated incumbent.

There is no price competition. Gas prices are heavily subsidized and set by the government via the Ministry of Oil and the Supreme Petroleum Council (SPC).

The regulation of Kuwait’s downstream gas market is characterized by centralized state control, where policy-making and operational oversight are integrated within government-owned entities.

The Kuwait Petroleum Corporation (KPC) and its subsidiaries, particularly the Kuwait National Petroleum Company (KNPC), oversee the transmission, distribution, and supply of natural gas to end-users, including power plants, industrial consumers, and other strategic sectors. Regulatory oversight is exercised through:

• The Ministry of Oil and KPC determine gas supply volumes, distribution priorities, and infrastructure development in line with national energy policy.
• Downstream operations must comply with industrial safety, pipeline integrity, and occupational health regulations to ensure safe gas handling and distribution.
• Operations are subject to the Environmental Protection Law (No. 42 of 2014), which governs emissions, waste management, and environmental monitoring for hydrocarbon facilities.
• Gas tariffs and allocations are set by state authorities, with end-users not permitted to choose alternative suppliers. This ensures that supply is aligned with national energy security and strategic priorities.

There is no competitive or liberalized downstream gas market, and any private or foreign participation is limited to technical or service contracts under state supervision.

Yes. Kuwait has introduced several notable policy and regulatory developments affecting its oil and gas sector in recent years.

1. Market Liberalization and Foreign Entry- Law No. 1 of 2024 Implementation: The primary regulatory shift is the full administrative rollout of Law No. 1 of 2024, which officially removed the requirement for foreign companies to have a local agent. Foreign firms can now bid directly for service contracts and establish wholly-owned local branches to execute projects, significantly reducing ‘middleman’ costs for state operators like KOC and KNPC.

2. Strategy 2040 and Production Targets- Kuwait Petroleum Corporation (KPC) has accelerated its goal to reach 4 million barrels per day (mb/d) by 2035. For the current 2025/2026 fiscal cycle, KPC is targeting a production capacity of 3.2 mb/d. To meet these targets, the Kuwait Oil Company (KOC) is executing a plan to expand its active rig fleet to 114 drilling rigs and 98 maintenance rigs by the end of the 2025-2026 period.

3. Offshore Exploration- KOC’s inaugural offshore exploratory and drilling operations, which began in 2022, are expected to conclude their primary phase in 2026. These efforts have already yielded major results, including the Al-Nokhatha field discovery in mid-2024 (est. 3.2 billion barrels of oil equivalent) and the Al-Julaia offshore discovery announced in early 2025.

4. Climate and Energy Transition- Net Zero 2050: KPC has formally committed to reaching net-zero carbon emissions by 2050. Key 2026 regulatory focuses include achieving zero routine gas flaring by 2030 and a mandate to shift electric submersible pumps from diesel generators to the national grid to reduce carbon footprints. Kuwait ratified a memorandum with China to accelerate renewable energy development, which will be integrated into oil field operations to lower production energy intensity.

5. Fiscal and Structural Reforms- Liquidity and Financing Law (2025): Passed in early 2025, this law has diversified the government’s funding options, allowing the oil sector to better manage liquidity during price volatility.

6. Global Minimum Tax: In 2025, Kuwait implemented a 15% global minimum tax for multinational corporations, aligning with G20 and OECD frameworks.

7. Industry restructuring and consolidation: Kuwait has begun a strategic overhaul of its state oil sector by merging government oil companies to improve efficiency and operational performance. This includes combining units such as the Kuwait National Petroleum Company (KNPC) and Kuwait Integrated Petroleum Industries Company (KIPIC), reflecting a broader push to streamline decision‑making and strengthen the sector’s competitiveness.

8. Digitalization and energy transformation strategy: Kuwait has announced and begun implementing a broad digital transformation and energy strategy, with substantial planned investment by KPC and its subsidiaries in digital systems, advanced technologies, renewables, and energy transition initiatives.

9. Workforce nationalization policies: State oil firms, including KPC, are implementing workforce changes aimed at increasing the share of Kuwaiti nationals and phasing out older expatriate staff in key roles, aligning with broader national employment and Kuwaitization policies.

Kuwait’s oil and gas industry faces a combination of structural, market, and geopolitical challenges, and the government and industry are responding through strategic, regulatory, and operational measures.

Challenges

1. Production and Capacity- Kuwait aims for 3.2 million barrels per day (mb/d) production, but aging fields and the high capital intensity of enhanced oil recovery (EOR) create technical and operational constraints.

2. Dependency on Associated Gas- Around one-third of Kuwait’s gas comes from oil extraction. OPEC+ quotas limit domestic gas supply, leading to summer electricity shortfalls and continued reliance on LNG imports.

3. Fiscal Vulnerability and Market Volatility- With a budget breakeven near $90 per barrel and oil projected at $55-$60 in 2026, Kuwait faces structural fiscal deficits affecting long-term development

4. Decelerating Global Demand- Rising adoption of electric vehicles may flatten transport fuel demand starting 2027, posing long-term risks to export revenues.

5. Technical and Operational Hazards- Safety and logistical challenges persist, highlighted by refinery fires and offshore field maintenance.

Government and Industry Responses

1. Production Capacity Expansion- Kuwait Petroleum Corporation (KPC) has committed to a $410 billion investment plan through 2040, including drilling roughly 450 new wells annually and deploying advanced EOR techniques.

2. Decoupling Gas from Oil- The industry is increasing non-associated gas output, aiming for 2 Bcf/d by 2040, through deep formations and offshore development.

3. Infrastructure & Downstream Integration- Al-Zour Refinery integration with petrochemical operations and 2.6 GW of solar energy by late 2026 will help meet domestic energy demand.

4. Fiscal and Legislative Measures- Law No. 60 of 2025 enables sovereign debt issuance, with approximately $11.3 billion in Eurobonds raised to fund key projects despite oil price volatility.

5. Human Capital and Technology- Training programs and international collaboration are strengthening local expertise, while digitalization efforts are gradually being implemented.

6. Environmental and Sustainability Initiatives- Measures to reduce flaring, improve water management, and lower carbon emissions align with ESG requirements.

Geopolitical and Market Impacts

1. Regional Instability – Mid-2025 tensions between Israel and Iran caused temporary oil price spikes above, but Kuwaiti exports remained stable due to careful diplomacy.

2. OPEC+ Dynamics – The unwinding of voluntary OPEC+ supply cuts allowed Kuwait to recapture market share and boost projected oil GDP by 5.7%.

3. Strategic Diplomacy – Joint projects with Saudi Arabia, such as the Dorra offshore gas field, are critical for future gas security, despite ongoing disputes with Iran over development rights.

4. Global Tax Compliance – Kuwait introduced a 15% top-up tax on multinationals, aligning with OECD standards and diversifying non-oil revenues.

5. Public Utility Regulation – The government is establishing a Public Electricity and Water Authority to improve efficiency and accelerate clean energy deployment under Kuwait Vision 2035.

6. Market Sentiment – Reform momentum has positioned Kuwait as a ‘black horse’ for 2026, with projected real GDP growth of 3.3-3.8%.

Yes. Kuwait has adopted policies and regulatory measures that reflect the global shift toward a low-carbon energy transition, although the approach is primarily policy- and operator-driven rather than based on economy-wide carbon pricing or statutory emission caps.

1. Kuwait’s oil and gas sector operates under a formal Energy Transition Strategy led by the Kuwait Petroleum Corporation (KPC), which targets net-zero emissions by 2050, in alignment with the national goal of carbon neutrality by 2060.

2. Operational and environmental requirements imposed by KPC, Kuwait Oil Company (KOC), and the Environment Public Authority (EPA) mandate reductions in gas flaring, improvements in energy efficiency, and cleaner operational practices across upstream and downstream activities.

3. Regulatory approvals for major oil and gas projects increasingly incorporate ESG, emissions control, and sustainability considerations, reflecting alignment with international climate and disclosure standards.

4. National policies under Kuwait Vision 2035 support renewable energy integration, emissions reduction initiatives, and preparatory frameworks for hydrogen and carbon capture technologies.

5. While Kuwait has not introduced a standalone carbon tax or mandatory economy-wide emissions trading system, it’s regulatory and policy framework clearly implements global low-carbon transition principles through binding operational mandates, environmental regulation, and strategic sector planning.

Requirements to Reduce Carbon Impact

There are currently no standalone carbon taxes or economy-wide emission caps applicable to the oil and gas industry. However, emissions reduction is implemented through binding operational mandates, environmental regulation, and contractual requirements imposed on national operators, including:

1. Zero Routine Flaring: Kuwait Oil Company (KOC) is subject to a formal mandate to achieve zero routine gas flaring by 2030. Upstream flaring has already been reduced to approximately 0.45–0.5%, compared to around 10% a decade ago.

2. Energy Efficiency Obligations: KPC has adopted phased energy efficiency targets aiming for a 12% improvement, with the objective of eliminating up to 7 million tons of CO₂ annually by 2045.

3. Operational Decarbonisation: Renewable energy is increasingly integrated into upstream operations. Projects such as Sidra 500 utilize solar power for electric submersible pumps, while KPC plans to deploy up to 17 GW of solar capacity by 2050 to reduce Scope 2 emissions.

4. Environmental Compliance: These measures operate alongside existing requirements under the Environment Public Authority (EPA) framework, including limits on emissions, flaring, and waste management.

Strategies and Proposals

(a) Hydrogen Production

• Kuwait is advancing hydrogen as a strategic pillar of its energy transition through a National Hydrogen Strategy and Roadmap, which is currently under implementation.
• Phased Investment Approach: The government has outlined an investment program of approximately KWD 1.5 billion (USD 4.9 billion), structured in three phases- pilot projects, domestic green industrial use, and large-scale export development.
• Project Development: KOC has awarded consultancy contracts for feasibility studies relating to large-scale green hydrogen production, with long-term targets extending to 2050.
• International Integration: Kuwait is also developing international downstream linkages, including hydrogen retail and export infrastructure, reflecting a long-term commitment to global hydrogen markets.

While these initiatives are largely policy-driven rather than mandated by statute, they are increasingly reflected in government approvals, investment planning, and strategic partnerships.

(b) Carbon Capture, Utilisation and Storage (CCUS)

• CCUS forms a central component of Kuwait’s decarbonisation strategy, particularly in relation to enhanced oil recovery (EOR).
• CCUS Hub Development: KOC is developing a CCUS hub in Western Kuwait with planned storage capacity of approximately 9 million tons per annum, targeted for operation by 2030.
• Long-Term Targets: By 2050, the sector aims to capture and store up to 26 million tons of CO₂ annually.
• EOR Integration: Pilot projects, including in the Minagish Oil Field, involve injecting captured CO₂ into reservoirs to maintain pressure while permanently sequestering carbon.

While Kuwait’s legal framework does not yet impose explicit statutory carbon reduction quotas, energy transition objectives are increasingly embedded in sectoral policy, regulatory approvals, environmental compliance requirements, and state-owned enterprise mandates. These measures are supported by Kuwait Vision 2035 and alignment with international ESG and climate-related disclosure standards.