5.000
%
Neutral
41
mm boe
90
%
Kuwait remans a close shop for independents, especially in the wake of the first Gulf War. The government does not seek external investment as it is adequately supported and funded by the IOCs.
March 3, 2024
Middle East
mm bbl
bcf
Middle East, bordering the Persian Gulf, between Iraq and Saudi Arabia.
Concession
There are no separate tax laws or regulations in Kuwait governing the oil and gas sector. Foreign (i.e. non-GCC members) companies are subject to the corporate income tax.
Kuwait occupies a relatively small land mass, but possesses 6% of the world’s proven oil reserves and is a global top ten oil exporter. The economy is heavily dependent upon oil production and related industries, which are almost wholly owned and operated by the government. The energy sector accounts for more than half of GDP and close to 90% of government revenue. The fall in oil prices after OPEC+ failed to agree on production targets in 2019 greatly exacerbated Kuwait’s fiscal deficit. This was heightened by the onset of the COVID-19 pandemic, which resulted in dramatically reduced oil demand in the first and second quarters of 2020.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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