Kuwait Petroleum Corp 'reassessing' $500bn project investment plan
Bloomberg says energy giant reviewing 2024 spending plan and may shuffle business units such as Kipic and Kuwait Gulf Oil
Kuwait Petroleum Corporation (KPC) is reportedly “reassessing” its plan to invest $500bn (KWD151.9bn) in capital projects till 2024.
KPC, both directly and through its various units, is the developer behind major oil and gas projects in the Gulf, such as Kuwait’s Al Zour Refinery through Kuwait Oil Co and Kipic; and Oman’s Duqm Refinery, a $7bn a joint venture between Oman Oil Company and Kuwait Petroleum Corporation.
State-held KPC’s plan to spend $500bn on capital projects was announced in 2018, but low oil prices, combined with Kuwait’s reduced output as part of an Opec deal and “a reevaluation of how best to spend the money” have spurred the company to revisit its investment plan, according to Bloomberg.
Also on the cards is a merger of Kuwait Foreign Petroleum Co, Kuwait Oil Tanker Co, Kuwait Gulf Oil Co, and Kipic, formally known as Kuwait Integrated Petroleum Industries Co. All four firms are likely to be transformed into “larger units” as part of KPC’s long-term strategy, but the move will require approval from Kuwait Government’s Supreme Petroleum Council.
The Bloomberg report cited an unnamed source who added that these “potential changes” had yet to be approved.
Kuwait is Opec’s fourth-largest producer, and in January recorded production levels of 2.75 million barrels per day, according to Bloomberg.