Kuwait is moving forward with plans to merge several of its eight state-owned oil companies to improve efficiency and reduce costs. The mergers, which were approved by the Kuwaiti cabinet two years ago, will be overseen by Kuwait Petroleum Corporation (KPC), the organization responsible for managing the country's oil industry.
The first merger is expected to take place in April, between Kuwait National Petroleum Company (KNPC) and Kuwait Integrated Petrochemical Industries Company (KIPIC). KNPC manages the refining industry, while KIPIC oversees the Al Zour oil refinery in southern Kuwait. A special committee has already been set up, with engineers from both companies working together to streamline operations, including refinery processes and energy distribution.
Further mergers are also planned between Kuwait Oil Company (KOC) and Kuwait Gulf Oil Company (KGOC), which are responsible for different areas of Kuwait's oil operations. The goal of these mergers is to speed up decision-making, cut down on duplicated projects, and create more streamlined operations.
Kuwait, a leading oil producer in OPEC, plans to increase its oil production capacity by 40%, despite a global outlook for slower oil demand. KPC's managing director, Khaled Al Sabah, expressed confidence in the ambitious goal, stating that they are on track to meet it.
This restructuring process is part of Kuwait's broader strategy to strengthen its oil sector, with more mergers expected by the end of March 2025.
