State-owned Kuwait Oil Company and Texas-based Halliburton Company signed a three-year agreement to explore oil off the coast of Kuwait, noting the state’s first foray into offshore services.
Kuwait Oil will use two rigs in the first stage of the project to drill six exploratory wells, said Kuwait Oil Company CEO Emad Sultan in a press conference following the signing of the agreement.
"Development of the country’s offshore area will add an estimated 100,000 barrels to Kuwait’s daily production capacity", he added.
He said the $597-million agreement aims at increasing Kuwait's oil and free-gas production in line with the start of the country's new era of production capabilities.
Kuwait pumps as much as 3 million barrels of oil per day from its wholly-owned areas, as the Organization of the Petroleum Exporting Countries' (OPEC) fourth-biggest producer.
The country is targeting a daily capacity of 4 million barrels by 2020.
By Busranur Begcecanli