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Kuwait Oil Discovery: A Historic Turning Point
The discovery of oil in Kuwait marked a pivotal turning point in its history, contributing radically to the country's transition from a trade-based and pearl-hunting economy to one of the world's largest oil-producing countries.
Despite the emergence of oil as a major source of income, Kuwait was not free of the economic resources that had guaranteed its citizens a decent life in the past. Since then, Kuwait has been known for its diverse commercial, industrial, and craft activities. Pearl hunting was one of the most prominent activities. as a major source of income in Kuwait's unique coastal location, In addition, Kuwait's distinct geographical location was a focal point for business activities, It served as a safe crossing point for trade between Asian countries across the Gulf to neighboring areas.
Hunting and diving: a legacy of challenges
The lives of Kuwaiti divers were full of challenges and risks, as they roamed the sea for months in search of precious pearls. Based on firm will and relentless resolve, and over time, The emergence of industrial pearl farms posed a major threat to Kuwait's natural pearl industry profession ", which made it difficult to continue in this profession with little return, However, Kuwaitis did not give up hope, as strange black patches of harsh geriatric material began to appear in different parts of the desert s natural wealth ", which increased optimism about the possibility of natural wealth under the Earth's surface.
The beginning of the oil era
The beginning of the oil era
With a wide awareness of oil exploration activities in neighboring Gulf States such as Bahrain, Saudi Arabia, and Iraq, as well as the successes of the British Oil Company BP in southern Iran, Kuwaiti aspirations to discover oil in their country are growing. With the discovery of oil in Bahrain in 1932, Kuwaitis were optimistic that those black spots might be evidence of underground oil wells that could revive the country's economy.
On 23 December 1934, Sheikh Ahmad Al-Jaber Al-Sabah signed an agreement that significantly increased the country's wealth and strengthened its international standing. On that day, the first oil concession was granted to Kuwait Oil Company Ltd, which was founded by Gulf Oil Company (currently Chevron) and British Persian Oil Company (currently British PetCompany).
In 1936, the first gestures of good began to emerge when the first experimental well was drilled in an oil field. Although the quantities extracted were not of great economic usefulness, the discovery of oil on 22 February 1938 was a real turning point, as the quantities discovered were huge and under high pressure, making it difficult to control the massive oil flow at first.
Stop and start again
Stop and start again
With the outbreak of World War II in 1939 and the cessation of excavations in Kuwait due to fears of sabotage and airstrikes, everyone was frustrated. But hope was not entirely lost, as aspirations remained for the return of excavations after the end of the war.
June 30, 1946, was one of the most memorable days in Kuwait's history when Sheikh Ahmad Al-Jaber al-Sabah (Taibullah al-Thawah) ran the silver wheel for the first crude oil export. This historic event changed the realities of Kuwait and its future, making it a prestigious place among the world's oil producers. Since then, oil has become the mainstay of Kuwait's economy and the primary catalyst for the renaissance of the State.
Expansion and development of the oil industry
During the following decades, Kuwait's oil industry experienced significant development. In the 1950s and 1960s, new oilfields such as Raudhattin and Manakish were discovered, increasing the country's oil production capabilities. With Kuwait's independence in 1961, the country began gradually nationalizing the oil industry, to take full control of its natural resources.
Nationalization of the oil industry: sovereignty over resources
In 1974, the Council of the Nation ratified the partnership agreement under which the State of Kuwait acquired 60 percent of Kuwait Oil Company's ownership and facilities, leaving 40 percent evenly distributed between BP and Gulf Oil. On December 6, 1975, Kuwait began a new era with the nationalization of the oil industry, restoring full control over its oil resources. Kuwait, as other Arab oil-producing countries did, began negotiations in the early 1970s to regain control of its natural wealth. After a series of agreements, the state was able to fully acquire Kuwait Oil Company (KOC), where an agreement was signed on March 5, 1975, between Kuwait and British Oil Companies (BP) and Gulf Companies (Chevron), granting Kuwait full ownership of its oil resources.
Kuwait's KOC began refining operations at the Mina al-Ahmadi refinery in 1949, founded the Kuwait Oil Tanker Company in 1957, founded KNPC in 1960 as a publicly and privately owned company, and began operations at the Shuaiba refinery in 1968.
Petrochemicals was also established in 1963 as a government-private sector project, and the following year began manufacturing oil derivatives. KPC was founded in 1980 to include all state-owned oil companies.
The plight of Iraq's brutal invasion
In early August 1990, Iraq's brutal invasion of the country occurred, and during that difficult period, Kuwaiti oil pumping was completely halted, as the Iraqi army destroyed and detonated some 800 oil wells, leading to massive fires, Iraq's occupation of Kuwait lasted for seven months, and ended with the intervention of the international coalition forces that carried out a large-scale military operation known as the "Desert Storm", which succeeded in liberating Kuwait on 26 February 1991.
His Highness the Late Amir, Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, oversaw the extinguishment of the last burning oil well in November 1991 in an achievement that demonstrated the resilient spirit of the Kuwaiti people.
After liberation, immediate efforts began to comb KOC's areas of operation from mines and explosives, and in March 1991, the oil well fires were extinguished. By late July 1991, the first shipment of Kuwaiti crude oil had been exported after liberation, followed by the resumption of drilling in the Al-Mu 'qa field in mid-September of the same year, where the late Prince Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah had run the golden wheel in commemoration
The company's operations continued at all levels. On September 26, 1995, a two-and-three-dimensional seismic survey agreement was signed to cover land reservoirs, the shallow water area, and Boubyan Island with basic data for exploration and development operations.
On December 30 of the same year, the company signed a contract with the Chinese Petroleum Corporation for the establishment of oil collection centers Nos. 27 and 28 in western Kuwait. On January 9, 1996, two cruise shipping platforms were completed. On January 28, 2001, and April 22 of the same year, assembly centers 27 and 28 were opened and operated respectively in the fields of western Kuwait.
The year 2006 witnessed a historic event throughout the country. Kuwait declared its entry into the club of natural gas-producing countries in commercial quantities in the area of Umm Naqa in northern Kuwait, accompanied by the discovery of light oil and gas in other areas, such as Al-Rudhten, Northwest Al-Rudhten, Al-Sabiriya, and Al-Bahra. All of these discoveries attach great importance to the oil strategy launched by the Kuwait Oil Company in 2005, which aims to reach a production capacity of 4 million barrels of oil per day.
On 30 December 2001 and 22 April 2001, the company signed a contract with CNPC for the construction of two oil assembly centers, No. 27 and No. 28, in western Kuwait. On 9 January 1996, the two shipyards were completed, and on 28 January 2001 and 22 April 2001 respectively, the two assembly centers, No. 27 and No. 28, were opened in the fields of western Kuwait.
In 2009, KOC celebrated its 75th anniversary and continued its efforts to develop production and explore new fields. The company's efforts culminated in a reduction of gas burning rates in its operations to less than 1% by 2015, one of KOC's most significant achievements in its commitment to environmental preservation.
Important Dates in Kuwait's Oil Sector
1934: KOC's beginnings date back to 1934 when it began its oil journey as a joint venture between Anglo-Persian Oil Company (currently BP) and Gulfoil (currently Chevron).
1946: KOC's success was recognized when His Highness Sheikh Ahmed Al Jaber Al Sabah managed the silver wheel marking the start of the first crude oil export from Kuwait abroad to British company Fusilaire in 1946, a crucial moment for Kuwait to join the world's major oil producers.
1949: The entry into oil production led to the launching of refineries, where the first refinery in Kuwait, Mina al-Ahmadi, was built and founded in 1949, which allowed crude oil to be converted into petrol and kerosene in Kuwait. This helped to transform tankers faster than other ports around the world.
1955: Within the next six years, oil was discovered in Raudhattin in 1955, and as oil production increased, prefabricated buildings were moved to provide housing for oil workers.
1957: Following the expansion and growth of the newly established Kuwait Oil Company and refineries, the oil sector in Kuwait established a new company, the Kuwait Oil Tankers Company (KOTC), founded in 1957. KOTC has worked to further develop maritime transport to exploit and discover oil in Kuwait.
1958: The development of maritime transport led to the establishment of new refineries, including the Port of Abdullah refinery, which was established in 1958.
1959: After the successful operation of the refineries, the tanker was built as the first Kuwaiti oil tanker, transporting 46,000 tons of crude oil in 1959.
1960: KNPC was subsequently founded to manage existing refineries in 1960.
1962: In light of the expansion of refineries, Kuwait Oil Company (KOC) began developing a new field in 1962, and then began offshore drilling in the City Oil Field in the Gulf of Kuwait.
1963: With the expansion of oil production in Kuwait, the Petroleum Chemical Industry Company was founded in 1963, joining the Kuwaiti oil sector to balance and conduct its operations.
1980: Kuwait has grown to occupy a strong position in the oil and gas market by nationalizing oil companies representing the State. KPC was founded in 1980 to integrate all national oil and gas production, processing, and transportation companies in Kuwait under one umbrella.
1981: After several years of growth and expansion, oil sector operations expanded and made notable achievements, and oil companies began to grow, with the establishment of the Kuwait Overseas Petroleum Exploration Company (KOFPEC) in 1981.
1983: The sector further expanded in 1983 when KPC acquired most of Gulf Oil's refining and marketing operations in Western Europe as well as BP's Danish operations and established KPC World in London to manage these shares.
1991: While Kuwaiti citizens united to help save their country from damage in 1991, international and Kuwaiti fire brigades tackled the oil fires that existed after Iraq's withdrawal of its troops. Kuwaiti fire brigades successfully extinguished fires in 41 wells in 54 days. The operation concluded with His Highness the late Amir Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah closing the crater of the last burning oil well, 118 in the Burgan field, at a major ceremony held on 6 November 1991.
1996: In 1996, a historic event was highlighted, with His Highness Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah running a golden symbolic wheel to mark the fiftieth anniversary of the first crude oil export.
2002: As operations evolved and the oil sector expanded, a new subsidiary, Kuwait Gulf Oil Company, was established in 2002.
2006: The year 2006 witnessed a nationwide historic event. Kuwait declared its entry into the club of natural gas-producing countries in commercial quantities in the area of Umm Naqa in northern Kuwait. This was accompanied by the discovery of light oil and gas in other areas such as Al-Rudhatain, North-West Al-Rudhatin, Al-Sabria, and Al-Bahra. All these discoveries give great importance to the oil strategy launched by the Kuwait Oil Company in 2005, which aims to reach a production capacity of 4 million barrels of oil per day.
2014: In 2014, KOC introduced the 3D Seismic Survey, the largest in Kuwait's history and one of the five largest land seismic surveys in the world. KNPC also signed contracts for the clean fuel project, marking the start of operations on one of the largest and most important projects in Kuwait's history.
2015: In 2015, KOC reduced the gas burning rate to less than 1%, thus achieving and implementing KOC's strategic directions and subsidiaries.
2016: A new subsidiary company and a new global office were opened in 2016 with the establishment of the Kuwait Integrated Petroleum Industries Company (KIPIC) to manage the Zour Oil complex.
2018: Successes continued over the years. In 2018, KOC celebrated the export of its first shipment of light oil, and KPC World, the owner of the joint venture refinery in Vietnam, the country's largest, conducted business in 2018.
2019: In 2019, KOTC began refurbishing and expanding its fleet with eight tankers of crude oil and its products. KOC resumed production in the joint operations area.
2020: Major operations began in 2020 as Quebec began the operational trial of the Zour refinery by receiving the first shipment of crude oil. In addition, the same year, KOC announced the start of production at the South Ar-Raqqah field in northern Kuwait, as well as the export of the first shipment of heavy crude oil to the international market.
2021: KNPC completed the operation of the Environmental Fuel Project in 2021. The Environmental Fuel Project is a massive initiative launched by KNPC to develop and modernize the oil refineries at Myna Abdullah and Myna Al-Ahmadi, raising the total refining capacity of the project to about 800,000 barrels per day. The project aims to produce environmentally friendly fuel that complies with global environmental standards, reduce carbon emissions, and increase the refinery's production capacity. It includes modernizing existing production units and creating new units to process oil products more efficiently and sustainably. The project is one of the largest in Kuwait's history, contributing to the realization of Kuwait Vision 2035.
2022: Kuwait Gulf Oil Company announces the launch of the Durra field development project under the joint agreement between Kuwait and Saudi Arabia in 2022 and the opening of the gas mitigation project in joint Wafra operations.
2024: The Zour Refinery fully opened and operated commercially on May 29, 2024, one of the world's largest oil refineries, in Kuwait as part of the State's efforts to enhance its production and refining capabilities. The project, operated by KIPCO, aims to produce high-quality petroleum products that conform to global environmental standards. Refining capacity of approximately 615 thousand barrels per day, the refinery contributes to meeting domestic and global demand for petroleum products and improving Kuwait's economy.
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