Our firm has substantial experience assisting both foreign and local entities with doing business in the Kuwaiti oil and gas sector. Although Kuwait and other countries in the region are taking steps to diversify their economies away from oil and gas, and certain projects are reserved for local entities, the oil and gas market in Kuwait remains robust and valuable opportunities continue to arise in the country.
ASAR offers practical and focused legal services that put our clients in the best position to take advantage of valuable projects in this sector while taking account of increasingly important environmental considerations and other relevant nuances of the Kuwaiti legal regime.
We have assisted both private and Kuwaiti government clients with a wide range of subjects in the oil and gas sector including setting up joint ventures and special purpose vehicles with the aim of pursuing and performing contracts, drafting agreements regulating supply and distribution arrangements, assisting in tendering arrangements with Kuwaiti government entities, advising on the sale and acquisition of facilities (such as refineries), and supporting clients in contractual disputes and litigious matters relating to projects in the oil and gas sector.
With respect to natural gas in particular, while Kuwait is primarily known for its substantial oil deposits, since the first gas processing complex was commissioned in 1979, the country has dedicated considerable resources to increase its natural gas production. It is expected that production at the gas rich north Kuwait Jurassic fields will be fully operational within the short to medium term and that by 2031/2032, Kuwait will be producing around 3.5-billion standard cubic feet of natural gas per day.
Kuwait Petroleum Company has even recently initiated a long term strategy for the expansion of both the upstream gas exploration and downstream gas refining sectors, as liquefied natural gas is reportedly being considered as an environmentally friendly option to accommodate a large portion of Kuwait’s energy needs. Accordingly, opportunities in the Kuwaiti gas sector are expected to expand considerably in the near future.