Lack of transparency in KPC embarrassing oil minister

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Kuwait Petroleum Corporation (KPC) is the only Kuwaiti oil company that publishes its financial results, and profit and loss accounts globally on an annual basis. None of the companies in the Middle East or in Africa and even the OPEC national oil companies does the same. KPC is the only company that does this. Its accounts are audited by one of the top five auditing firms in the world.

However, it does not comment or reply to any of verbal or written queries and comments made by the local media even though KPC has more than 150 personnel working in public relations departments in all its affiliated companies.

KPC usually prefers to stay silent and does not bother to protect its image despite the extent of criticism it receives. So we wonder what kind of duty those employees perform. No one seems to know.

By ignoring the local press/media, KPC is embarrassing the oil minister who is forced to face our MPs and reply to them without even being informed by the corporation to the extent of the situation getting out of hand and him having to face grilling due to no fault of his own.

It does not delegate or call for press conference with full participation of KPC’s senior officers to answer any questions from the media. Such a thing could help the minister himself and can test his executive members on the way they handle the “questionnaires’’ and the quality of their replies.

The recent incident of KPC’s deviation from its established policy of dealing with oil traders and taking further steps of hedging and speculating on oil and product prices could have stopped at once had the oil minister spoken openly to the press and ahead of time instead of having to face MPs and their threats of further questionings which could lead to grilling.

KPC must be more open. Its top executives must have the confidence to face the media and the press. There is nothing for them to worry about if their books are in order and the KPC balance sheet is crystal clear. Its executive members should enroll in courses on how to handle the media as well as educate themselves on public speaking.

The recent incidents of dealing, cooperating and creating joint companies with oil traders have exposed the weakness and failure of KPC in handling simple questions and queries, forcing it to seek help and beg “friends” to write on their behalf.

KPC should be proud of being the only national oil company to declare its profit and loss accounts for over 30 years. However, it still can’t answer simple questions.

Why is KPC being so fearful that it is unable to justify its own decisions?

email: [email protected]

By Kamel Al-Harami – Independent Oil Analyst

 

 

This news has been read 7000 times!

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