Petrofac Sustainability Integrates Environmental and Governance Considerations into Decision-Making

As the Kuwait Petroleum Corporation (KPC) advances its comprehensive sustainability and energy transition strategy—aiming to reduce the carbon footprint of its operations and achieve net-zero Scope 1 and Scope 2 emissions by 2050—this goal aligns with preserving the pivotal role of the oil sector in the Kuwaiti economy.

The KPC Sustainability Report for the period 2023–2025, covering the fiscal years 2023/2024 and 2024/2025, indicates that the corporation will focus in the coming phase on several key pathways, including emissions reduction, energy efficiency, solar energy, carbon capture, utilization, and storage (CCUS), flaring reduction, water and waste management, as well as human resource development and governance enhancement.

According to KPC data, Scope 1 emission intensity in upstream operations reached approximately 8.54 kg of CO2 equivalent per barrel of oil equivalent in 2023/2024, representing a 26 percent decrease compared to the 2021/2022 baseline.

Conversely, total absolute emissions showed a slight decline between the two fiscal years, with total Scope 1 and Scope 2 emissions amounting to approximately 28.88 million tons in 2023/2024, compared to about 29.39 million tons in 2024/2025.

These indicators underscore the importance of analyzing emissions in parallel with production levels and operational activity, particularly since one of the corporation’s objectives is to reduce emission intensity and improve operational efficiency.

Furthermore, the oil sector’s plans aim to expand solar energy capacity, with the potential to reach approximately 17 gigawatts by 2050.

In the gas sector, upstream operations have made progress in reducing flaring. KPC data indicates that the gas flaring rate has decreased from over 10 percent nearly a decade ago to less than 0.5 percent.

This pathway holds dual significance, both environmentally and economically, by reducing emissions and maximizing the utilization of produced gas.

Carbon Capture, Utilization, and Storage (CCUS) represents one of the key solutions relied upon by KPC to achieve its climate goals.

KPC data indicates the identification of a geological formation with a storage capacity of approximately one billion tons of carbon dioxide.

Governance constitutes a core element of the sustainability strategy, through strengthening risk management, monitoring ESG risks, applying principles of integrity and ethics, and supporting internal control and audit functions.

Subcommittees under the Board of Directors oversee various risk and sustainability files, reflecting the corporation’s orientation toward integrating environmental and governance considerations into decision-making.

Report data showed that total water withdrawals increased from approximately 2.95 million megaliters in 2023/2024 to about 3.04 million megaliters in 2024/2025.

In contrast, groundwater withdrawals decreased from 8.983 megaliters to 5.972 megaliters, while seawater withdrawals rose from approximately 2.68 million megaliters to 2.71 million megaliters.

The corporation also focuses on reducing waste, promoting reuse, and recycling, as part of an approach to strengthen the concept of the circular economy in oil operations.

While continuing to develop oil and gas production capacities and maximize the economic value of hydrocarbon resources, KPC is working to reduce emission intensity, expand the use of renewable energy, and develop carbon capture technologies.

The equation of balancing energy security, the competitiveness of the oil sector, and emissions reduction remains a central pillar of the Kuwait Petroleum Corporation’s strategy up to 2050.