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Kuna reports that Kuwait has begun the merger of KNPC and KIPIC state oil companies.

Kuna reports that Kuwait has begun the merger of KNPC and KIPIC state oil companies.

Kuwait is taking steps to merge its two state-owned oil companies, reported the news agency Kuna on Tuesday. The OPEC producer wants to restructure their energy industry.

Kuwait National Petroleum Company (KNPC) plans to acquire Kuwait Integrated Petroleum Industries Company (KIPIC), Kuna reported citing KNPC Chief Executive Officer Wadha Al-Khateeb.

KIPIC is in charge at Al Zour Refinery, while KNPC oversees Kuwait's refinery industry.

Al-Khateeb, cited by Kuna as saying that the rapidly changing global oil and gas industry places a huge responsibility on the energy sector of a country to adapt to and enhance such changing dynamics.

Kuna reported that she also reaffirmed Kuwait's commitment to meeting its obligations to clients and maintaining growth, while maintaining Kuwait's position as an international energy industry.

Brent crude oil prices fell by 20% in a week, reaching a 4-year low.

Since then, prices have recovered a bit to around $66 per barrel.

Kuwait Petroleum Corporation CEO Sheikh Nawaf Saud al-Sabah said to reporters in January that Kuwait's daily production capacity was over 3,000,000 barrels.

Last year, the wealthy Gulf state announced that it had made a huge oil discovery. The estimated reserves are 3.2 billion barrels. (Reporting and editing by Gerry Doyle, Christopher Cushing and Hadeel al Sayegh)

(source: Reuters)