Kuwait running global oil market, achievement phenomenal

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CONGRATULATIONS to two Kuwaitis – Haitham Al-Ghais for being appointed as the Secretary General of OPEC, and Jamal Al-Loughani for the position of Secretary General for OAPEC (Organization of Arab Petroleum Exporting Countries). Kuwait’s achievement in the oil sector is phenomenal, as it was the first ever national oil company to build its own refinery, despite extreme opposition from the owners of Kuwait’s BP and Gulf Oil.

A hefty premium was imposed on the sale of crude to Kuwait National Petroleum Company (KNPC) at about 3 US cents per barrel, despite the Kuwaiti government being the owner of 60 percent of shares and Kuwaiti individuals owning 40 percent. Also, severe restrictions were imposed on the sale of new refinery products to any country and company that BP and Gulf Oil trade with. KNPC kept on operating and making profits until the full nationalization of KOC in 1975.

With it came the establishment of the Kuwait Oil Tankers Company (KOTC), which is the first national company to venture on oil transportation. This was followed by the formation of Kuwait’s Petrochemical Industries Company (PIC) with OPEC and other national oil companies, becoming a pioneer in selling petroleum products globally.

In 1983, we needed to close the circle by going down, being in touch with the final global consumers and being at home with our customers through our retail gas stations under the brand name of Q8. Today, Kuwait is enjoying the best three modernized refineries in the world, which are ready to supply the best up-to-date products and specifications to Japan and Far East markets as well as the USA. This shows our experience in reading the product market, which is the core of our oil activities.
Accordingly, we lead our neighboring countries and passed on to them our experience to establish globally with our partnership in Oman, Vietnam, and Italy. The move to appoint our young Kuwaitis to such high positions in the business is well earned, and makes us proud of their hard work, ranking them globally. Congratulations Kuwait! Well done, Haitham and Jamal!

By Kamel Al-Harami
Independent Oil Analyst

Email: [email protected]

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