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Kuwait Petroleum Aims 25% Reduction in Capital Spending Through Merging Units

Kuwait Petroleum Corporation is appointing a consultant to help merge its subsidiaries as the state-run company slashes capital spending by more than 25% over the next five years.

KPC will combine its eight business units into four to streamline operations. To make the change as smooth as possible, it plans to endorse with a consultant next month.

To cut five-year capital spending to 19.8 billion dinars ($65 billion), KPC discontinued some projects and postponed others, including exploration. It also moved back some expected acquisitions by a subsidiary, Kuwait Foreign Petroleum Exploration Co. Kuwait's Supreme Petroleum Council, which oversees the OPEC member's oil industry, has granted the merger plan. Oil sales provide about 90% of Kuwait's official revenue, and like many of its Gulf Arab neighbors, the country is retrenching amid a 32% drop in crude prices this year.

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Posted on :8/26/2020