Esteemed Ministers and Officials,
Dear colleagues working in the oil sector, ...
Our distinguished guests,
I welcome you to the Strategic Directions 2040, and Energy Transition 2050 Conference. As you have seen in the previous video, the story of modern Kuwait began with the oil industry. Our sector is the backbone of the national economy, as we have been blessed by God with the discovery and production of oil. Since the first oil shipment was exported in 1946, the oil sector has contributed to the building of the modern state. This has been achieved through the collective efforts of our national workforce, who have tirelessly dedicated their skills and expertise to the oil sector.
You may also be aware of the challenges that Kuwait faces in diversifying its sources of income and ensuring the sustainability of the national economy through the growth and development of the oil industry, despite the existential challenges posed by climate change. Kuwait Petroleum Corporation remains committed to investing in the Kuwaiti oil sector to support its growth and ensure Kuwait's continued global role towards its customers around the world.
On the other hand, our world is witnessing a significant shift to the use of renewable and clean energy sources. This shift requires a long-term strategic vision, as we recognize the importance of oil as a strategic fuel source, but also work actively towards the energy transition and investments in our national workforce and and new technologies.
In line with the government's work program for 2023-2027 and the National Development Plan of Kuwait, today we launch the strategic directions of the Kuwait Petroleum Corporation 2040. We also unveil the roadmap to achieve net zero by 2050. My colleagues at KPC and its subsidiaries will explain the significant strategic initiatives and capital projects that are crucial for the success of the Government's Work Program on matters related to oil and gas.
During this conference, we will highlight the most important projects that aim to increase the production capacity of crude oil, increase the production of natural gas, and enhance refining capabilities. In addition, we will focus on the integrated infrastructure development of the Al-Dorra field, which is a crucial economic pillar in the seventeenth Government Work Program.
It is evident that we live in an era filled with challenges and opportunities. KPC and its subsidiaries are aware of this and tackle these factors with agility, professionalism, and planning to achieve sustainable growth and economic diversification for the State of Kuwait.
Due to the importance of this industry, which accounts for over 90% of Kuwait's revenues, it is essential to overcome certain obstacles to enable the Kuwait Petroleum Corporation to execute the projects it has outlined in the Government's Work Program, and deliver them within the set timelines, to ensure continuous financial flow for the State. Therefore, we will continue our cooperation with the National Assembly in its upcoming session and work on laws and legislation that support our strategic directions and address any challenges that may hinder KPC operations, all in accordance with Kuwait's vision for 2040.
Finally, I would like to extend my heartfelt thanks and appreciation to His Highness the Amir, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, and to His Highness the Crown Prince, Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, for their support to all employees in the oil sector. I would also like to express my gratitude to His Highness Sheikh Ahmed Nawaf Al-Ahmad Al-Sabah, the Prime Minister, for his gracious patronage of this conference.
May the Almighty protect our country and crown our efforts with success.
As employees of Kuwait Petroleum Corporation and its subsidiaries,
we shoulder the weight of our sector in the development of Kuwait’s economy. We are responsible for generating 90% of the state's general treasury revenues and providing the fuel needs of Kuwaiti citizens and residents. Moreover, the oil sector is directly responsible for the incomes of over 23,000 Kuwaiti families, in addition to a similar number of support services workers.
We are proud to shoulder the responsibility placed upon the Kuwaiti oil sector and we are dedicated to serving the country. We are driven to fulfill our mission by managing our operations globally on a commercial integrated and sustainable basis, while developing the capabilities of our workforce and contributing to the development of the Kuwaiti economy.
Today, Kuwait Petroleum Corporation proudly launches its strategic directions until 2040, in line with global market forecasts, including those related to the energy transition, carbon emissions reduction, and an anticipated 50% increase in energy demand by 2050.
In any energy transition scenario, oil will remain a vital part of the energy mix. Kuwaiti oil stands out as having lower production costs and the lowest carbon intensity compared to other global oils. We are committed to the sustainable management of our hydrocarbon resources, and we believe that the last barrel of oil on Earth will be produced from our region. This is why we must continue to invest in growth and preserve our natural resources.
Because oil will continue to dominate the energy mix, and the energy transition to renewable and alternative energy sources will be gradual, Kuwait Petroleum Corporation has updated its strategic directions in exploration, production, refining, and petrochemicals domestically and internationally. Our commitment to the development of the Kuwaiti economy is evident in our strategic directions, particularly in growing the adjacent industries that increase Kuwait's GDP.
In line with Kuwait's commitment to achieving net zero by 2050, Kuwait Petroleum Corporation has developed a comprehensive energy transition strategy and a detailed roadmap that includes initiatives and projects to achieve carbon neutrality by 2050. When Net Zero is achieved, the Kuwaiti oil barrel will remain the most desirable in the world due to its low financial and carbon emissions costs.
Our strategic directions aim to continue our commitment to providing safe and stable supplies to our customers, especially given decades-old relationships with strategic clients. These relationships have endured through the toughest crises Kuwait faced, thanks to our customers' trust in the quality of our products and our business approach with our partners. We Kuwaitis have a history of trading in various environments, overcoming challenges over the years, from the time of desert caravans and pearl diving ships to the era of oil tankers and global fuel stations.
The implementation of the Corporation's capital projects will ensure additional revenue flows to the state treasury, estimated at around $11 billion annually during the five-year plan, and will contribute to maintaining the Corporation's market share.
Therefore, the success of the Corporation and its companies requires the Kuwaiti rallying spirit from all segments: government, legislative authorities, citizens, and residents. Our strategic directions also require the provision of an open economic framework that allows the Corporation to achieve its vision as a leading commercial entity in the oil and gas industry.
I conclude by reaffirming that we have ensured that our strategic directions are translated into revenue-generating, value-added, and sustainable capital projects that the Corporation will implement with the help of God and your support.
I will now give the floor to my fellow CEOs to explain the rest of the strategic directions and how to achieve them.
Alsalam Alaikum ...
It is notable that the energy industry is developing at a rapid pace globally, and on one hand it continues achieving the balance between supply and demand from various sources of energy, while on the other hand coupling energy security with sustainability and reducing the effects of climate change globally, where we see that the global trend of decision makers to continue ensuring the security of energy through the enhancement of oil and gas supplies as well as petroleum products, while simultaneously working to reduce greenhouse gas emissions.
We also see today that not only oil and gas companies but also energy companies are focusing on the importance of the energy transition in achieving carbon neutrality, while also preserving the traditional hydrocarbon processes of exploration, production, refining and petrochemicals.
This reflects upon the principle of continued global oil and gas demand, and thus the transition to the alternative energies is not a switch, and history has never witnessed the complete replacement of a major energy source with the complete removal of another.
In light of our environmental responsibilities and commitments towards society and the world, KPC and its Subsidiaries have prepared the 2050 Energy Transition strategy. As visible in the video presented to your kind selves showcasing our 2040 Strategic Directions, it is worth noting that our Strategic Directions and our Strategy of reaching carbon neutrality by 2050 are well-aligned with the State of Kuwait’s declaration at COP-27 of reaching carbon neutrality by 2060, which indicates the important role that the Kuwaiti Oil Sector plays in reducing greenhouse gas emissions at the national level.
In this regard, our strategic vision calls for “Supply energy resources at lowest emissions intensity globally, commit to achieve net zero scope 1 and scope 2 GHG emissions for KPC by 2050 and selectively invest in new alternative energies.”
Accordingly, we would like to announce the official launch of KPC’s Energy Transition Strategy in line with the launch of the KPC’s Updated 2040 Strategic Directions, which include many initiatives and projects related to the abatement of carbon emissions in order to achieve net zero emissions. The main initiatives include utilizing renewable energy and storage, improving energy efficiency, flaring reduction to reach zero-routine gas flaring, as well as carbon capture, use and storage, and our partnership with relevant governmental entities for carbon offsetting through forestation. In addition, investing in new energy businesses such as producing second generation biofuels, and installing electric charging points for electric vehicles.
To achieve the Energy Transition targets, KPC and Subsidiaries will invest around 110 billion US dollars in these capital projects. We will accomplish this through several partnerships and cooperation with governmental entities, the banking sector, and Kuwaiti and international research institutes specialized in reduction of harmful emissions technologies. We will now present to you an explanatory video explaining the Energy Transition roadmap and the main future initiatives that KPC and Subsidiaries intend to undertake.
Alsalam Alaykom wa Rahmat Allah wa Barakatoho
KOC’s role in Carbon Capture, Utilization and Storage
Kuwait Petroleum International’s achievements in energy transition in
Human Resource’s role in our Strategic Directions and Energy Transition