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Sunday , October 20 2019

KPC awaiting SPC approval to restructure the oil sector

Study conducted

KUWAIT CITY, Aug 31: Minister of Oil and Electricity and Water Khalid Al-Fadhel was recently quoted as saying the Kuwait Petroleum Corporation (KPC) is awaiting the approval of the Supreme Petroleum Council (SPC) on the results of a study conducted by the global consulting house on the need to restructure the oil sector, reports Al-Jarida daily.

Al-Fadhel said this in response to a question from MP Abdulwahab Al-Babtain who wanted to know if there is a tendency to merge some oil companies’ integrated and sustainable processes to optimize the value of Kuwaiti hydrocarbons.

He said the study which cost 333,870 dinars, was being finalized in preparation for obtaining appropriate guidance and, if approved, detailed studies of the legal form of the structure will be carried out.

And whether there are legal studies on the merger of Kuwait Gulf Oil Company with any of the companies, Al-Fadhel said the approval will have to come from the Supreme Petroleum Council (SPC) on the results of the preliminary study.

Regarding the existence of a tendency to include unions members concerning the merger of companies as a party to hear their point of view, he stressed that coordination with the relevant authorities, including the unions, will be done after obtaining the approval of the SPC.

As to why KPC did not announce its intention to merge the contractors with these companies, including workers and others, Al-Fadhel said that the subject is still under study by the SPC, and that it is not appropriate to announce any directions in this regard but will be done after obtaining the necessary approvals from the concerned authorities.

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