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KUWAIT CITY, Aug 21: The board of directors of Kuwait Petroleum Corporation (KPC) has suspended the decision of the previous KPC board and Supreme Petroleum Council to disassociate from the Kuwait Petroleum Exploration Company (KUFPEC) due to its losses for previous years at the time, reports Al-Rai daily. This move was made after KUFPEC achieved record profits for the first time in its history, amounting to KD 86 million last year, as it modified its conditions and stabilized its budget, and succeeded in its systematic expansions that it started years ago.
According to sources, a decision had been issued in May 2021 to disassociate from KUFPEC based on a study prepared in a previous period under different circumstances.
The current circumstances have prompted the current board of directors of KPC to review the decision. It issued a decision to form a committee to study the matter after the changed circumstances and the company’s transformation for profitability for the first time after years of losses. The new study will address the current and expected future conditions and data for international oil prices, especially since the company is done with all its losses and now produces more than 100,000 barrels of oil per day. The decision to disassociate with the company was based on the data of an old study that can be deemed as inaccurate at the present time.
The council will bear the consequences of the decision later, despite the adoption of the decision by the previous councils. The decision to disassociate or keep KUFPEC will remain subject to the results of the new study that will be carried out by the committee in coordination with the company and the planning sector of KPC to ensure the soundness of the decision and then update the data based on it. The sources highlighted that the CEO of KPC Sheikh Nawaf Saud Al-Sabah chose to take the decision carefully and review its future effects on the corporation and its companies, because of his knowledge of the company’s capabilities and current performance.