Opec-member Kuwait is pumping at around 2.5 million barrels per day (bpd) of crude oil and aims to boost capacity to 3 million bpd in the first half of 2009, a top oil official said on Monday.

The world's seventh-largest oil producer is sticking to the production target of 2.53 million bpd set by the Opec and has about 200,000 bpd of spare capacity, said Saad al-Shuwaib, the chief executive of state oil firm Kuwait Petroleum Corp (KPC).

'We are producing around 2.5 million bpd, at the quota,' he told Reuters in an interview. 'We have a little spare capacity in case it's needed we hope by the first half of 2009 to reach 3 million bpd.'

Kuwait's informal Opec output target is 2.53 million bpd, although a Reuters survey found the Gulf Arab state pumped at 2.61 million bpd in July.

Top oil exporter Saudi Arabia boosted its output to the fastest rate in 27 years, and well above its Opec target, to help meet rising demand and tame runaway oil prices.

Kuwait is on course to meet its long-term capacity target of 4 million bpd in 2020 despite political hurdles at home, spiralling costs for oil projects and a tight market for contractors, Shuwaib said.

'This target is achievable,' he said. 'We're not really worried that we will not reach this number.'

Among the projects to raise capacity is the controversial Project Kuwait, which should finally be discussed by parliament
in the next session due to convene in October, Shuwaib said.

'This time I am sure Project Kuwait has to make it to the floor,' he said. 'It has had full discussion in the past at
committee level.'

The plan to boost oil output from northern fields with the help of international companies was first proposed over a decade ago, but has never made it past parliamentary committee level due to opposition from some MPs to the involvement of foreign firms in oil and gas production. Kuwait's fields are off-limits
to foreign investors.

Another component of Kuwait's plan to raise capacity is a new round of technical service contracts with international oil firms.

Kuwait has missed a self-imposed July target to sign a deal with oil major Exxon Mobil to boost heavy oil output, but still hopes to sign this and other contracts by the end of 2009, Shuwaib said.

Other companies negotiating for contracts are Royal Dutch Shell, Chevron, and BP. Shuwaib said he hopes to receive final approval from Chinese authorities for a new 300,000 bpd joint venture refinery and petrochemical plant in Guangdong in two or three months.-Reuters