KNPC absorbs KIPIC - Expands energy portfolio

KUWAIT CITY, June 2: The Kuwait Integrated Petroleum Industries Company (KIPIC) has been merged with Kuwait National Petroleum Company (KNPC) through acquisition, as per the announcement of KNPC in the official gazette, ‘Kuwait Al-Youm’, on Monday. This is in line with the decision issued by the Supreme Petroleum Council on April 29 regarding the merger of the two companies through the acquisition and dissolution of KIPIC.

The Extraordinary General Assembly of KIPIC approved the merger with KNPC, which will legally replace KIPIC in all its rights and obligations and all the effects of the merger. The minister of oil, who is also the chairman of the Board of Directors of Kuwait Petroleum Corporation (KPC), is authorized to determine the effective date of the merger. The consequences of the decision include the complete termination of the legal status of KIPIC, with the authorization to delegate any of these powers to another party.

The decision that the Supreme Petroleum Council issued at its 132nd meeting (April 29, 2026) regarding the merger of KIPIC and KNPC states the following: First: The Extraordinary General Assembly of KNPC issued its resolution approving the merger of KIPIC (the merged company) into KNPC (the acquiring company). Second: Approval to increase KNPC’s capital by an amount equivalent to the book value of KIPIC’s assets as of March 31, 2026, so that KNPC’s capital becomes KD2,632,616,000. Third: Approval to amend Article Five of KNPC’s Articles of Association to stipulate the following: “The company’s capital is set at KD 2,632,616 distributed as 2,632,616 shares, fully paid up. The capital may be increased or decreased by a resolution of the Extraordinary General Assembly based on a proposal from the Board of Directors, in accordance with the procedures, conditions and regulations stipulated in the Companies Law and the Articles of Association.

KNPC approved the amendment of Article Four of its Articles of Association to align with the objectives of the KIPIC as follows:

The objectives for which the company was established are:

1. Engage in the petroleum industry in Kuwait or abroad, at any stage of this industry, including exploration and drilling for oil, gas and other hydrocarbon materials, and the production, refining, processing, manufacturing, transportation and storage of said materials and any of their products and preparations, as well as their sale and export.

2. Develop and advance the petroleum industry, its products and preparations, and related industries.

3. Cooperate with similar petroleum companies to facilitate production, refining, transportation, distribution and marketing operations, including agreements on petroleum production quantities and prices, and the necessary facilities to achieve these objectives.

4. Establish the petrochemical and petrochemical industries of all types, including petrochemicals and their derivatives.

5. Undertake all supporting activities and operations that contribute to the proper management and execution of the aforementioned processes.

The company may directly conduct the aforementioned activities or pursue any other objectives it deems appropriate, either directly or through an agent, within the State of Kuwait or abroad. With the approval of the Board of Directors of KPC, the company may have an interest in or participate in any way with entities or companies that conduct similar activities or that may assist it in achieving its objectives in Kuwait or abroad. The company may also establish, participate in or acquire such entities and companies to merge with them.

By Najeh Bilal Al-Seyassah/Arab Times Staff