Kuwait Announces "Giant" New Oilfield Discovery in Persian Gulf

On Sunday, Kuwait's national oil company announced the discovery of a "giant" oil find, large enough that its reserves equal three years of the energy-rich nation's entire annual production. 

The discovery sits just off the island of Failaka in the Persian Gulf, next to the northeastern edge of the Kuwaiti exclusive economic zone. It contains about 3.2 billion barrels of oil equivalent, including 2.1 billion barrels of light oil and 5.1 trillion cubic feet of natural gas. 

The find is located in Kuwait's Al-Nokhatha field, and in a statement, Kuwait Oil Company said that the discovery suggests "huge potential" for additional oil and gas finds within the complex. It will help sustain Kuwait's production at a reliable level for years to come, the KOC said, and create more local employment opportunities (and bidding opportunities for contractors).  

Kuwait is a small emirate of four million people, but its rich oil and gas fields make it the fifth-largest producer in OPEC with output of about 2.5 million barrels a day, according to Bloomberg. The majority of its exports are in the form of refined products, reflecting a push to add value in the midstream sector. It has the newest and largest refinery in the Middle East, Al Zour, which is designed for high output of low-sulfur fuel oil for the shipping industry. The largest share of its exports go to Asia, and China is its largest trading partner.