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Kuwait Oil Company
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Home > About KOC > KOC History > Promise & Discovery
Faith in the Future | Oil Concession | Oil Discovered | The Silver Wheel | Nationalization | 50th Anniversary
Promise and Discovery
Faith In The Future
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In 1921, Sheikh Ahmad Al-Jaber Al-Sabah became the Ruler of Kuwait. A brave and resourceful leader, a man of vision as well as a valiant warrior, Sheikh Ahmad was to steer his people through difficult times as the 1920s drew to a close. The cultured pearl industry became a serious, and ultimately overwhelming, competitor to Kuwait's main industry, pearl diving. In spite of this, and despite a worldwide decline in trade as the thirties began, he kept his faith in the future. This was largely because of several strange black patches of a rough bituminous substance which had long been observed in different parts of the desert. The Ruler and his people were well aware of the activities of the oil prospectors in neighboring Bahrain, Saudi Arabia and Iraq - to say nothing of the Anglo-Persian Oil Company's successes in southern Iran. Their expectations raised by the Bahrain oil discoveries of 1932, Kuwaitis were hopeful that these surface deposits betokened underground reservoirs of a commodity which could stimulate and revitalize their trade.
A technical report heralded a discovery which was to turn the small, windswept desert land of Kuwait into a bustling modern welfare state within the space of a quarter of a century. All the remarkable modern buildings - schools, hospitals, office towers, commercial centres and housing developments which the State has used its new-found wealth to create have their origin in the simple typewritten REPORT ON THE GEOLOGY AND OIL PROSPECTS OF KUWAIT TERRITORY, dated June 1st, 1935.
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On December 23rd, 1934, Sheikh Ahmad Al-Jaber Al-Sabah signed a document which was to increase his country's wealth and international importance: the first Kuwait oil concession agreement granted to Kuwait Oil Company Limited. Kuwait Oil Company, Ltd. was formed by the Gulf Oil Corporation (presently Chevron Oil) and the Anglo-Persian Oil Company (presently British Petroleum).
H.H the late Sheikh Ahmad Al-Jaber Al-Sabah (center) at the signing of Kuwait's oil concession agreement 1934. |
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While drilling continued in Bahrain, attention turned to Burgan and to the recommendations about this area in the technical report of Cox and Rhoades. Geological surveys were carried out and the Company drilled in this area through 1937 and early 1938.
It was here, on February 22nd, 1938 that oil was discovered. Moreover, this oil was under such pressure and in such quantity that it blasted through the well head valve with such force that it could not be controlled. It was a gusher that was "difficult to hold". Lack of sufficient drilling mud to block the hole meant that other means had to be found to block the well, and found immediately. Donald Campbell, then Chief Accountant, finally located a 60 foot wooden pole in the town bazaar which served as a temporary stopper. And that was how they brought in Burgan No. 1 - at 11 a.m. on a rainy Thursday morning. This first well is still producing today. |
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On June 30th, 1946 H.H. the late Sheikh Ahmad Al-Jaber Al-Sabah turned a silver wheel to start Kuwait's first crude oil export aboard the tanker "British Fusilier".
H.H. the late Sheikh Ahmad Al-Jaber Al-Sabah turning the silver wheel to start Kuwait's first crude oil shipment - June 30th, 1946. |
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A new era of historic importance began on December 6th, 1975 with the nationalization of Kuwait's oil industry. In line with all the other Arab oil producing states, Kuwait began negotiations in the early 1970s to restore control over its own natural oil resources. By mutual agreements with the Company's two original partners, the State's shareholding in Kuwait Oil Company was increased progressively until full control was achieved. On March 5th, 1975, an agreement was signed by the State of Kuwait and the two oil companies (British Petroleum and Gulf) giving Kuwait complete control of its oil resources.
The development of Kuwait's oil industry to its pre-eminence in the world of oil today is of course due to the abundance of the God-given gift, but it depended much on the wise direction of Kuwait's Rulers and the business acumen of Kuwait's people.
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On 50th Anniversary of this occasion, H.H. the Amir, Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah unveiled the curtain from a memorial monument in Ahmadi on June 30th, 1996 to immortalize this cherished event. The Amir turned a symbolic golden wheel in memory of the original ceremony.
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