KUWAIT CITY, July 22: In a significant development for Kuwait’s oil industry, plans are underway to merge four oil companies into two entities by 2025. An official document obtained by Al-Seyassah reveals that the Kuwait Gulf Oil Company will be merged with the Kuwait Oil Company, marking the second stage in the consolidation process. The Kuwait Petroleum Corporation is overseeing the transfer of shares from the KGOC to KOC.

Sources close to the matter indicate that the final stages of the merger are being meticulously managed to avoid any disruption to the operations of the eight oil companies involved in the consolidation. Sheikh Nawaf Al-Saud Al-Sabah, CEO of the Petroleum Corporation, is personally leading the merger efforts, emphasizing a careful approach to ensure smooth integration. The merger is expected to yield significant financial benefits, with an estimated annual savings of approximately $1.25 billion. These savings will be achieved through reduced costs, streamlined maintenance operations, and other efficiencies.

The consolidation plans are set to unfold over the next few years, with the ultimate goal of merging no fewer than four oil companies into two entities by 2025. The KPC is committed to preserving the rights and benefits of the national workforce, and the CEO has been actively engaging with labor union leaders to address any concerns related to the merger. Future merger activities will focus on integrating companies with similar functions, such as the Kuwait Foreign Petroleum Exploration Company (KUFPEC) and Kuwait Petroleum International Company, which share similar international activities.

The merger strategy has been informed by international and regional oil industry experiences, with the primary objective being to enhance Kuwait’s oil and gas production capabilities. The consolidation aims to foster greater exploration and production efficiency while adhering to global environmental standards.

By Najeh Bilal
Al-Seyassah/Arab Times Staff