KUWAIT CITY, Feb 11: The Kuwait Petroleum Corporation (KPC) is to merge its eight trading units into four units this year to simplify the company’s business and to re-evaluate the spending of about $500 billion in capital investment by 2040, reports Al-Qabas daily quoting a Bloomberg news agency source. The sources said that the measure comes in light of the decline in oil prices globally and reduction of oil production of Kuwait based on the OPEC agreement, as well as to assess the best ways to spend money.
Kuwait Foreign Petroleum Exploration Company (KUFPEC), the Kuwait Oil Tankers Company, the Kuwait Gulf Oil Company and the Kuwait Integrated Petroleum Industries (KIPIC) may also be integrated into larger units within the long-term strategy of the corporation,” the source added. The source pointed out that the potential merger of all these companies requires the approval of the government, and pointed to the return of the KPC to form senior management in the eight units earlier this month, paving the way for possible internal integration among them, which is expected to take place in two years.
Kuwait Petroleum Corp (KPC) is seeking to expand refining and petrochemicals, with Brent down 28 percent since Oct 3, Bloomberg said. The source also said that the KPC is also reviewing the investment plans of heavy oil, which is expensive. The company aims to produce 85,000 barrels per day of heavy oil by 2020 or 2021 and invest in the development of heavy crude oil reservoirs.
Meanwhile Minister of Commerce and Industry and Minister of State for Services Khaled Al-Roudhan is about to open the government building mall in Al-Qurain, the Mubarak Al-Kabeer governorate on Feb 18, reports Al-Anba daily.
The sources said the new government mall will include all ministries and government agencies serving residents in the area with the aim to facilitate the completion of transactions and the provision of services in all State ministries including Commerce, Interior and Foreign Affairs, Social Affairs and Labor, Justice, Transportation and the Public Authority for Minors Affairs, the Public Authority for Civil Information, the Public Authority of Manpower, etc.
The sources added the new building will include expertise and competencies in all specialties and qualifications. The center will also provide services to citizens and residents, which will reduce the pressure on the headquarters of the main ministries. The sources pointed out that there is coordination with employees of all ministries and government institutions to strengthen the work mechanisms at the new center.