Kuwait City: Efforts by Kuwait’s state-owned energy companies to reach net-zero emissions by 2050 are the focus of Oxford Business Group’s (OBG) latest Environmental, Social, and Governance (ESG) Intelligence report, developed in partnership with Kuwait Oil Company (KOC) and Kuwait Gulf Oil Company (KGOC). Titled "Navigating the Future: Sustainability in Kuwait's Upstream Oil Sector," this report focuses on strategies aimed at reducing the industry’s environmental impact over the long term and expanding economic opportunities for Kuwaiti citizens.

The report looks at the strategic roadmap for KOC and KGOC to reach net-zero emissions in alignment with their parent company, Kuwait Petroleum Corporation (KPC). It explores the need for a blend of cutting-edge technologies and structured measures to achieve net-zero emissions while continuing to generate profitable returns for the country. The report explores the potential of carbon capture, utilisation, and storage (CCUS) as an effective means for emissions abatement, and also spotlights the substantial progress that has been registered in curtailing emissions from gas flaring. Elsewhere, initiatives focused on electrification, particularly leveraging solar energy and energy efficiency solutions, show promise in mitigating indirect emissions from upstream operations.

In addition to emission reduction strategies, the report sheds light on KOC and KGOC’s emphasis on social and governance initiatives. The companies’ policies promoting local content and Kuwaitisation are pivotal in evaluating their social and governance performance, with both companies exceeding targets in these areas.

In terms of governance, KOC and KGOC adopt a holistic risk management approach. KGOC’s future strategy entails necessitates close collaboration with foreign partners in the Kuwaiti-Saudi Partitioned Zone to ensure alignment with stakeholders’ expectations and foster mutual socio-economic development.

Ahmed Jaber Al Eidan, CEO of KOC, highlighted that the ongoing energy transition presents promising opportunities for Kuwait to diversify its energy portfolio and invest in renewable energy sources. 

“This includes solar and wind, which can help meet domestic energy needs and potentially the export of excess electricity through linkages between GCC countries. To accomplish this objective, and in partnership with KPC and its subsidiaries, we have developed an ambitious 2050 Energy Transition Strategy and a detailed implementation roadmap.”

Khalid Nayef Al Otaibi, Acting CEO of KGOC noted that KGOC has long-standing partnerships with Aramco Gulf Operations Company and Chevron Saudi Arabian Chevron, which is vital for the implementation of ESG initiatives in a Joint Operations set up. 

“Partner engagement is key to maximising the potential of ESG in Joint Operations. By actively involving partners in decision-making processes and fostering open communication, we ensure alignment with our partners on ESG goals” he added.

According to Jana Treeck, OBG’s Managing Director for the Middle East, this latest report by Oxford Business Group, in collaboration with KOC and KGOC, shines a spotlight on the effective strategies guiding Kuwait’s upstream oil sector towards a sustainable and environmentally conscious future.

“The commitment showcased by KOC and KGOC aligns with the global shift towards sustainable practices, signifying a pivotal step in the region’s journey toward environmental stewardship,” Treeck said.

Dana Agarbicean, OBG’s Co-Country Director in Kuwait, noted that this latest report brings much-needed attention to the holistic sustainability efforts being made by Gulf countries that have long been dependent on hydrocarbons, including Kuwait. 
“As the world focuses its attention on decreasing carbon emissions and mitigating climate change, it is positive to see Kuwait’s largest oil companies taking clear actions to reduce their carbon footprint and enhance their positive social impact,” Agarbicean said. 

‘Navigating the Future: Sustainability in Kuwait's Upstream Oil Sector’ is now available to view and download at: https://oxfordbusinessgroup.com/reports/report-how-can-kuwaits-upstream-oil-sector-reach-net-zero-esg-report/ 

About Oxford Business Group

Oxford Business Group (OBG) is a global research and advisory company with a presence in over 30 countries, spanning Africa, the Middle East, Asia, and the Americas. It is recognised internationally as a distinctive and respected provider of on-the-ground intelligence on world’s fastest-growing markets, termed The Yellow Slice, in reference to OBG’s corporate colour. 

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