Kuwait’s Ministry of Commerce and Industry (MCI) has approved a request by Kuwait Petroleum Corporation (KPC) to set up what would become the country’s largest oil company.
The Kuwait Integrated Petrochemical Industries Company will have a capital of $6bn (KD1.8bn) of which 25 percent, $1.5bn (KD450mn), is paid, reported Kuwait News Agency KUNA.
The new company will have a production capacity of around 615,000 barrels per day, according to Kuwait’s Mina Al-Ahmadi Refinery deputy chief executive officer Ahmed Al-Jeemaz.
Al-Jeemaz added 40 percent of its production will be devoted to low-sulfur fuel power stations.
The giant company will serve as a subsidiary to KPC, which runs refining and petrochemical projects. It also runs the integration project between the refining and petrochemical complex in Az-Zour, which includes the Az-Zour Refinery, a petrochemical complex and a liquefied natural gas (LNG) importing facility.
KPC is expected to place 50 percent of the new company’s shares on the Kuwait Stock Exchange, unnamed sources told local media. However, the move has not yet been confirmed.
The company is expected to play an important role in running the Az-Zour refinery and terminals to import liquefied natural gas, according to Al-Jeemaz.