Progress and Prosperity-English - Kuwait Oil Company

Progress & ProsperityHISTORICAL INSIGHTKuwait Oil Company (KOC) was established in 1934under joint ownership agreement between the Anglo-IranianOil Company, now known as British Petroleumand Gulf Oil Corporation known today asChevron. The company was given free concessionrights to explore and produce oil in state of Kuwait.Exploration activities began soon after; surface geologystudies and gravity surveys were conducted.In 1936 KOC drilled the first exploratory well innorth Bahra area but the results were not encouragingenough to continue.In 1938 oil was discovered in Burgan well–1. Duringthe following years, eight exploration and appraisalwells were drilled which established “Burgan” asone of the largest producing oil fields in the world.However, drilling and production operations weresuspended due to the eruption of World War II. Afterthe end of the war in 1945, operations were resumedand the eight drilled wells produced at a rateof 30,000 bpd. Surface facilities, pipe lines, exportingfacilities… etc had been constructed and Kuwait wasready for new era of prosperity.In June 30, 1946 His Highness the late Sheikh AhmadAl-Jaber, then Amir of Kuwait, inaugurated the firstshipment of oil when he turned the silver wheeledvalve to start loading of the first flow of oil onto the12,000 tonne “British Fuzilier” tanker.Following the early success, more appraisals anddevelopment well were drilled in Burgan field to increaseproduction. In 1951, explorations operationswere extended into Magwa and Ahmadi ridge area,oil was discovered and production began from theMagwa field in 1953.Exploration activities continued in the following yearsleading to the discovery of Raudhatain field in northKuwait and Minagish field in west Kuwait in 1955.In 1974 a partnership was ratified by Kuwait NationalAssembly giving 60% control of the operationsand facilities of KOC to the State of Kuwait whileremaining 40% were divided equally between BPand Gulf.4