A committee has been created to oversee the merger of three of Kuwait’s state-owned oil companies in an effort to streamline operations.The committee was formed on 12 August and is chaired by Wadha Al-Khatib, the chief executive of both Kuwait National Petroleum Company (KNPC) and Kuwait Integrated Petroleum Industries Company (Kipic).It will oversee the merger of KNPC, Kipic and Kuwait Oil Tanker Company (KOTC).The committee’s establishment follows Sheikh Nawaf Al-Saud Al-Sabah, the chief executive of Kuwait Petroleum Corporation (KPC), approving the merger on 18 July 2024.The committee has 11 members and includes experts from the financial, legal and gas transportation departments.It is tasked with completing the merger process within six months, according to a statement from KPC.Increasing efficiencyKPC anticipates that the merger will yield savings of between $1.5bn and $2bn a year, enhance efficiency and consolidate operations within Kuwait’s oil sector.KNPC manages the Ahmadi and Mina Abdullah refineries, while Kipic oversees the Al-Zour refinery.The merger aims to consolidate these refineries under a single entity to streamline operations and reduce spending.Additionally, integrating KOTC’s liquefied natural gas (LNG) operations with KNPC aims to centralise marketing efforts, enhance efficiency and reduce the risk of accidents at the gas-filling plants.The merger is projected to make savings by cutting costs related to security, maintenance and management salaries.The merger is also expected to facilitate better implementation of digital transformations, boost business volume and reduce bureaucracy.The full merger of these companies is expected to be completed by 2025, according to KPC.Upstream plansKPC plans to integrate Kuwait Gulf Oil Company (KGOC), which operates upstream activities in the Divided Zone shared with Saudi Arabia, with the state-owned Kuwait Oil Company (KOC).KPC said that an announcement relating to this merger is likely before 2025, adding that the KOGC-KOC merger was part of a strategic vision to consolidate similar activities and enhance efficiency. (ICE KUWAIT)

Fonte notizia: Meed