KPC scales back tenders, pushes strategic growth

Arab Times

6 days ago

KUWAIT CITY, July 20: Kuwait Petroleum Corporation (KPC) has asked its subsidiaries to rationalize spending as much as possible and to defer tendering, allowing those only with significant potential to achieve sustainability and development; since it is also focusing on rationalizing all forms of waste in its subsidiaries, so that this will positively impact the profits of oil companies in the future. Sources revealed KPC also requested its subsidiaries to present proposals and studies to stimulate private sector contribution to accelerate the achievement of its 2040 strategy; especially since the private sector is one of the arms of Stateowned oil companies in the fields of exploration, production, marketing, refining, transportation, and providing the necessary materials for the oil industry through tenders.
Sources affirmed that KPC welcomes the entry of the local private sector into the petrochemical industry; considering the approach of KPC Chief Executive Officer (CSO) Sheikh Nawaf Al-Saud Al-Sabah who recently called for the expansion of the petrochemical industry domestically and internationally to diversify the sources of revenue for the corporation and its subsidiaries, in light of the active global demand for petrochemical products, which have become a major player in enhancing returns. Sources disclosed that there are already existing companies operating in the Kuwaiti oil sector, through the Petrochemical Industries Company, and several local and international companies, with varying percentages. Sources explained that the KPC's approach focuses on achieving the highest returns for the sector, citing the experience of Kuwait Petrochemical Industries Company's acquisition two months ago of a 25 percent stake in the Chinese Wanhua Chemical Group, which operates in the petrochemical plants located in Yintai region in the People's Republic of China. Sources said this ensures the supply of Kuwaiti feedstock to these projects, which guarantees profitability on one hand and increases Kuwaiti supplies on the other hand.
Regarding the existing and successful projects between KPC and the local and international companies in the field of petrochemicals, sources stated that in terms of local participation, KPC owns 80 percent stake in Kuwait Paraxylene Production Company, 46 percent in Kuwait Styrene Company, 24.5 percent in Equate Petrochemical Company, and 42.5 percent in Kuwait Olefins Company. On the most important shares of KPC outside Kuwait, sources said Kuwait Petrochemical Industries Company owns a 33.3 percent stake in the Gulf Petrochemical Industries Company (GPIC), 25 percent in the SK Advance Company in South Korea and 49 percent in the SK PIC Global Company in South Korea.