Kuwait is set to create a new, $6 billion downstream oil and gas company, according to government officials.
The country’s Ministry of Commerce and Industry (MCI) approved a request from Kuwait Petroleum Company (KPC) to create a new subsidiary, the Kuwait Integrated Petrochemical Industries Company (KIPIC).
KIPIC would be responsible for running the Al-Zour refinery, Kuwait’s epic 615,000 barrel per day ultra-modern refinery which is due to come onstream in 2018.
Deputy chief executive officer (CEO) of Kuwait’s Mina Al-Ahmadi Refinery Ahmed Al-Jeemaz said that the creation of KIPIC was necessary “because of its importance in running Az-Zour refinery and terminals to import liquefied natural gas and the presence of an attached petrochemical complex.”
Kuwait’s upstream oil sector currently produces around 2.5 million barrels of crude oil per day. Kuwait’s economy is heavily dependent upon unrefined crude exports and so has been particularly hardly hit by the fall in oil prices. The Gulf state is trying to realign its hydrocarbon industry to focus on more profitable, value added petrochemicals and refined products. The creation of the Kuwait Integrated Petrochemical Industries Company will be integral to achieving this aim.