Kuwait Petroleum Corporation (KPC) has achieved remarkable success in significantly diversifying its oil export mix by shifting from a primary reliance on crude oil exports to a 50/50 blend of crude oil and products. It has also succeeded in increasing Kuwait’s exports of medium distillates and high-value fuel oil.

Despite these efforts and successes, market conditions have prevented the fruits of these efforts. The decline in global oil prices, coupled with the need to reduce Kuwaiti oil production rates in line with OPEC+ decisions, has had a direct negative impact on Kuwait, whose oil revenues have declined by approximately $10 billion, reaching approximately $70 billion in 2024.

On the other hand, Kuwait is steadily moving toward its goal of increasing crude oil production capacity to 3.2 million barrels per day by the end of 2025. Kuwait Petroleum Corporation (KPC) CEO Sheikh Nawaf Al-Sabah says that Kuwait’s total production capacity now exceeds 3 million barrels per day, including its share of the Neutral Zone production capacity shared with Saudi Arabia, which currently stands at approximately 200,000 barrels per day.

KPC is struggling to halt the decline in Kuwait’s production capacity, but is facing difficulties due to the recent significant cuts in its budget.