04/06/2026
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04/06/2026
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KPC Kuwait Petroleum Corporation headquarters
KUWAIT CITY, June 4: Forty-six years after its establishment, and in light of the Cabinet’s approval to amend certain provisions of Law No. 6/1980 concerning the establishment of the Kuwait Petroleum Corporation (KPC), due to difficulties and obstacles hindering the corporation from achieving its desired objectives, former minister and former KPC Board Member Yahya Al- Sumait confirmed that KPC had indeed faced several challenges that impeded its progress.
He indicated that the Cabinet’s approval of these amendments represents a significant step toward launching stalled oil projects. Al-Sumait explained that the anticipated amendment will help remove many of the difficulties and challenges that have been hindering KPC’s operations and projects. The law had previously been used by some members of the National Assembly as a justification for undeserved appointments of individuals who did not meet the required criteria, which in turn negatively affected the performance of some positions.
The amendment to the law would enable KPC to privatize some of its facilities that are not directly related to oil resources. He expressed hope that the amendment would facilitate the entry of the local private sector and foreign companies into the oil sector, thereby increasing KPC’s revenues. Al-Sumait said one of the benefits of amending the law would be greater flexibility in accelerating the merger of oil companies. He noted that the process of transferring KPC’s assets to the Kuwait National Petroleum Company (KNPC) had taken a considerable amount of time before the final merger phase was announced.
Al-Sumait stated that current laws hinder KPC’s progress in the required restructuring due to overlapping jurisdictions with other entities, in addition to legislative obstacles related to certain restrictions on profits and tenders. KPC’s financial situation may not improve after the halt of Kuwaiti oil exports due to the closure of the Strait of Hormuz. He emphasized the importance of KPC subsidiaries refraining from any speculative activities in Boursa Kuwait, in order to avoid exposing the country’s wealth to speculation and the financial shocks experienced by global stock markets.
Al-Sumait stressed the importance of focusing on diversifying budget revenue sources through fully secure and sustainable methods. He explained that the first Kuwaiti company to manage the country’s oil sector was the Kuwait Oil Company (KOC), established in 1934. Its activities included exploration, onshore and offshore surveys, drilling test wells, developing producing fields, and exploring crude oil and natural gas.
In 1975, KOC was nationalized and became fully owned by the Kuwaiti government. In 1980, KPC was established as a parent company encompassing all Kuwaiti oil companies under Law No. 6/1980, becoming a legal entity overseen by the Minister of Oil and operating with an independent budget.
By Najeh Bilal Al-Seyassah/Arab Times Staff
