KPC strengthens overseas refining network

These assets include major refineries and refueling stations for vehicles and aircraft, operated by Kuwait Petroleum International (Q8), a subsidiary that has strengthened Kuwait’s presence in global energy markets. These strategic investments have done more than generate strong financial returns and support operational sustainability. They also serve as an important safeguard for the marketing of Kuwaiti crude and help secure long-term market shares across various continents, demonstrating Kuwait’s role in the global refining and manufacturing sector. In this context, an official report reveals that KPC’s international refining and manufacturing sector achieved significant progress during the fiscal year that ended last March.

The Nghi Son refinery in Vietnam, in which KPC holds a 35.1 percent stake, underwent a major transformation, most notably through the settlement of a USD 1.5 billion arbitration dispute and the realization of USD 66 million in savings during 2025, bringing total savings achieved since 2021 to USD 336 million. Meanwhile, the Duqm refinery project in Oman, a 50-50 joint venture between KPC and Oman’s OQ, generated profits of USD 7 billion in 2025. According to data from Duqm and based on a report by KPC, the Duqm refinery achieved savings of USD 270 million in 2025, along with an additional USD 55 million through February 2026.

The report explained that the refinery continued to play a role in off-taking Kuwaiti oil, having imported 41.5 million barrels. The Milazzo refinery in Italy, in which KPC holds a 50 percent stake, continued implementing plans to enhance production efficiency and investment returns within global energy markets. As part of an initiative to exchange expertise among these refineries, informed sources explained that the executive management of the Duqm refinery is currently planning a field visit to the Nghi Son refinery in Vietnam. The visit aims to examine best practices in operational efficiency, maintenance, supply chain management, and workforce development, all of which contribute to strengthening the strategic and operational performance of Kuwait’s overseas refineries.

According to sources, such visits are crucial to achieving operational integration and facilitating knowledge transfer, enabling the refineries to navigate challenges in global energy markets and secure a sustainable competitive advantage in line with KPC’s 2040 Vision. These joint operational initiatives underscore the depth of the integrated vision adopted by Kuwait Petroleum International. The partnerships extend beyond investment, financial, and technical considerations to include building knowledge bridges, transferring technology, and standardizing operational protocols.

This approach directly contributes to improving production efficiency and reducing operating costs, factors that are critical to refinery profitability. The sources indicated that the visit represents a proactive step toward fostering greater synergy among Kuwait’s overseas assets. The Nghi Son refinery offers significant refining capacity and extensive experience in managing complex operations and Asian supply chains, serving as a practical model that can be leveraged to enhance operations at the Duqm refinery, now a major industrial landmark in the Arabian Gulf.

This bilateral cooperation focuses on key areas, including the development of preventive maintenance systems, the digital transformation of daily operations, and strengthening supply chain resilience to withstand potential disruptions to maritime trade or global supply lines. The sources further noted that the exchange of expertise in workforce development serves as a key driver of the long-term sustainability of these multi-billion-dollar investments. In addition, this integration of knowledge helps strengthen the leadership and technical skills of refinery engineers and operators, contributing to innovative solutions to technical challenges and efforts to reduce carbon emissions. This aligns with global trends toward cleaner energy and greater environmental responsibility. Ultimately, these efforts strengthen Kuwait’s position as a reliable and responsible global energy provider in both international and domestic markets.