Anwar Al-Mutlaq

Shell Kuwait’s strategic priorities encompass maximizing oil production, optimizing extraction efficiency, and knowledge transfer to Kuwait Oil Company.

Can you provide an overview of Shell’s current strategic priorities and initiatives in the Kuwaiti energy sector?

Shell’s relationship with Kuwait dates back to 1948 and initially centered on crude oil trading. This partnership deepened in 1961 with a concession agreement to explore Kuwait’s offshore oil and gas resources. Shell’s strategic priorities in Kuwait have evolved over the decades, reflecting the country’s status as an oil-based economy where oil production is crucial. Shell’s technical services in Kuwait are primarily focused on maximizing oil production, particularly in the northern fields. In our collaboration with Kuwait Oil Company (KOC), we concentrate on three main areas: enhancing oil production, optimizing the cost-efficiency of oil extraction, and transferring knowledge and expertise to KOC.

How is Shell Kuwait leveraging innovative technologies to reduce cost, improve operational efficiency, and reduce its environmental impact in the country?

In a significant technological leap two years ago, Shell Kuwait introduced an innovative drilling technique designed for congested areas, known as the multi-well pad. This approach enables KOC to optimize land use and reduce the spacing between wells to only 5m, significantly enhancing drilling efficiency and cost-effectiveness. Another focus area is heavy oil production, where thousands of shallow wells are required. Here, we are moving towards standardized drilling processes using smaller rigs that can be quickly repositioned, streamlining operations. Addressing the environmental impact, particularly for heavy oil extraction, is a priority. Heavy oil production necessitates a substantial amount of steam for heating underground reservoirs, which in turn requires considerable energy. We are exploring the potential of co-generation plants, which could simultaneously generate electricity and utilize the resultant heat for reservoir heating. These initiatives are pivotal in reducing energy intensity and minimizing operational environmental footprints.

Shell has signed an MoU with KPC for cooperation and fossil fuel production. Can you elaborate on the specific areas of expertise and know-how that will be shared?

Shell’s Memorandum of Understanding (MoU) with Kuwait Petroleum Corporation, a relationship spanning over 15 years and recently renewed, symbolizes our continued collaboration. This MoU facilitates high-level dialogue and experience sharing between K-companies and Shell, focusing on both successful strategies and lessons learned from past challenges. This collaboration aims to avoid repeating mistakes and to foster a stronger partnership. This partnership is not only a professional alignment but also a source of mutual pride for shared goals.

How does Shell plan to support Kuwait’s ambitious goal of reaching net zero emissions whilst ensuring energy security?

Both Shell and Kuwait are committed to the global objective of achieving net zero emissions by 2050. Shell has already made significant strides in reducing emissions worldwide, particularly in scopes one and two. Kuwait, while focusing on stabilizing and expanding its oil and gas sector, understands the importance of a robust economy as the bedrock for its energy transition and sustainability endeavors. Among the pioneering initiatives is a CO2 capture and injection pilot, which, contrary to initial expectations, has been remarkably successful, yielding an unexpected 500,000 barrels over its first year. These positive developments are indicative of the growing prioritization of emission reduction strategies in Kuwait’s energy policy.

What are Shell’s plans and strategies for growth in Kuwait?

Shell is deeply committed to its long-term presence in Kuwait. This commitment is not only business-oriented but also personal for many of us, including myself, who are from Kuwait and wish to contribute to the nation’s growth. Our strategy involves bringing investment into Kuwait, thereby easing the government’s economic burden. The Enhanced Technical Service Agreement (ETSA) model in North Kuwait is a testament to our belief in this enduring relationship. As Kuwait aspires to evolve and grow, Shell is eager to support and be a part of this journey, recognizing that embracing fundamental changes can lead to substantial progress and success.