Kuwait: KOGS Offers Major Projects for Foreign Investors

What happened: The Kuwaiti oil industry unveiled a number of major projects at its annual KOGS showcase event, including plans to lease the pipeline network and engage IECs to develop recent offshore finds.

Why it matters: Coming as Kuwait continues its push to raise production to 4mn bpd by 2035, this underlines Kuwait’s continued momentum and lucrative opportunities for IECs.

What happens next: We expect the momentum to continue, but the almost-completed pipeline leasing plan carries higher long-term political risk.

The fifth Kuwait Oil and Gas Show (KOGS) on 3-5 February featured several major announcements as Kuwait signaled its desire to leverage international capital and expertise. Sweeping aside concerns about recent delays, the country’s oil leadership promised big tenders and announced initiatives to lease Kuwait’s pipeline network and engage international companies to develop its offshore finds.

Kuwait's Next Big Oil Push

This year’s KOGS saw senior Kuwaiti officials announce a slew of major initiatives, with the most notable being Prime Minister Ahmad al-Sabah’s launch of the Shaheen (falcon) and Saif (sword) projects.

Substantiating reports that Kuwait is preparing to lease or sell a $7bn stake in its pipeline network to raise funds for capex, the Shaheen project will offer investors a financial stake in Kuwait’s pipelines. However, KPC will retain full operational control.

In part by using capital raised from Shaheen, KOC’s Saif project will engage international companies to develop recent offshore discoveries at Nokhatha, Julaiah and Jazah (see 24 October 2025 Latest Analysis). Saif could provide the bulk of the million barrels Kuwait needs to meet its goal of raising capacity to 4mn bpd by 2035.

Despite framing Shaheen and Saif as providing investors with an increased stake in Kuwait’s publicly owned oil industry, Kuwaiti oil leadership has been careful to underline that both would involve service contracts rather than concessions or ownership stakes. This is likely an attempt to ward off Kuwait’s longstanding resource nationalism.

In addition to the named initiatives, Kuwait's oil leadership also hinted at other big developments. Despite concerns around project delays and cancellations (see 20 January 2026 Latest Analysis), Oil Minister Tariq al-Roumi predicted the Durra gas field project would see several tenders in 2026 (see 29 September 2025 Latest Analysis). CEO Ahmad al-Eidan reported KOC was in talks with US firms, including Devon Energy and EOG, to potentially develop Kuwait’s shale resources.

Opportunities and Risks: Take The Sword, Beware the Falcon

All told, this year’s KOGS sent very strong positive signals to investors. Despite concerns about global overproduction, Kuwait’s oil leadership is intent on moving full steam ahead with billions of dollars in expansion in the coming years and is eager for international support to do so.

That said, there are some minor risks investors will need to manage. In the short term, there is still lingering concern about stalled project timelines, and despite continued momentum, investors will likely need to endure short-term delays. In the longer term, the reconvening of Parliament in 2028 could unleash popular criticism of “concession-like” deals made with international companies in its absence.

Within this framework, we most favorably view the Durra field project’s prospects, followed in order by Saif, potential unconventional development, and Shaheen. Although complicated by an idiosyncratic operating framework and experiencing delays over the past year, Durra arguably remains Kuwait’s foremost development priority amid ongoing electricity issues; we expect the field to see significant progress in 2026.

Similarly, while development may be slower than KOGS rhetoric suggests, offshore exploration and development remain primary goals for KOC’s Eidan. IECs with expertise in offshore production are well-positioned to secure favorable terms for both the Saif project and unconventional development.

Despite ostensibly being the quickest investment, with a deal reportedly to be finalized in the coming months, we have the most reservations about Shaheen. Of all the developments on offer, Shaheen is the one that Kuwait officials appear most hesitant on — in large part because it is the arrangement most resembling a foreign concession, which are banned under the constitution and have in the past triggered popular opposition.