KPC Kuwait Petroleum Corporation headquarters

It is time for the Board of Kuwait Petroleum Corporation (KPC) to take a hard look at the corporation’s approved strategy. A comprehensive analysis and discussion are needed to evaluate whether KPC has achieved its objectives, or if it has fallen short, and the reasons. KPC operates in 10 oil and oil-related sectors, covering the full spectrum from upstream to downstream activities. These include refining, local and international marketing, shipping, and operating Q8 gas stations in Europe and the Far East.

In many ways, KPC resembles a fully integrated oil company, similar to its international counterparts such as ExxonMobil, Shell, BP, ConocoPhillips, and Total. Kuwait currently produces between 2.6 to 2.7 million barrels of crude oil per day. KPC’s strategic goal is to increase this output to 3 to 3.5 million barrels per day within the next 5 to 10 years.

Ideally, this should be achieved within the next 5 years, as there is an urgent need to boost production to at least 3 million barrels per day to ensure our domestic refineries operate at full capacity. In this way, Kuwait can generate higher returns, earning $3 to $6 more per barrel for finished products. With some of the world’s most advanced refineries, both locally and overseas, Kuwait has a refining capacity of over 1.8 million barrels per day, which currently accounts for around 66 percent of its total crude production. This imbalance contradicts our established policy of refining only 50 percent of total production and highlights the need to accelerate crude oil output to meet the strategic goal of three million barrels per day.

To achieve this, Kuwait may need to call on international cooperation. Perhaps it is time to engage with major international oil companies, not merely as service providers, but as partners. These companies are no longer interested in rental contracts, but they seek equity participation and a share in any new oil discoveries. The time has come for Kuwait to follow the example of our neighboring oil-producing countries, such as Iraq, Iran, the UAE, Qatar, and Bahrain, which have adopted models of shared ownership in new oil discoveries. While the specific terms of how many barrels are shared per discovery remain confidential, the outcome is clear – increased oil production and, as a result, higher daily revenues from the sale of Kuwaiti crude oil.

Of course, some will strongly object, citing national sovereignty and the belief that we should not share our primary source of income and national wealth. However, the reality is that we lack the technical expertise and experience to manage complex oil reserves, especially those involving water-associated oil.

Kuwait, with crude oil reserves exceeding 90 billion barrels, cannot afford to lag while production remains stagnant at 2.7 million barrels per day. It is time to face reality and set aside narrow self-interests. Like other oil-producing nations, we must focus on increasing production, boosting revenues, and reducing our annual budget deficits. With greater crude oil production, KPC can improve operational efficiency and consequently generate more revenue for the state.

By Kamel Al-Harami
Independent Oil Analyst

email: naftikuwaiti@yahoo. com

KUWAIT CITY, July 31: Kuwait National Petroleum Company (KNPC) has obtained approval to build 16 fuel stations this year, say sources from the oil sector. Sources disclosed that the stations will be located in new residential cities, while some densely populated residential areas will have additional fuel stations.

Sources said the company aims to increase its sales of all types of gasoline to at least seven million liters by 2030, considering that its sales exceeded 5.105 million liters of gasoline by the end of the fiscal year ending March 31, 2025; compared to 5.016 million liters in the previous year and around 4.891 million liters in 2023. Sources confirmed that the company is targeting increased revenues from car wash stations, whose revenues declined in fiscal 2024/2025 to KD393,300 compared to KD432,000 in the previous fiscal year. Sources indicated that KNPC is planning to develop its car wash stations to achieve the targeted returns. Sources stated that KNPC will establish new fuel stations in line with environmental cleanliness and international requirements, particularly the strategy of Kuwait Petroleum Corporation (KPC) to achieve carbon neutrality. Sources added the company intends to implement many initiatives related to its projects and refineries in order to reduce carbon emissions.

Moreover, sources confirmed that the Chief Executive Officer (CEO) of KNPC Wadha Al-Khatib ensured that around 120 Kuwaiti employees under contractor contracts were treated fairly as their salaries, which exceeded the top of the grade scale, were not affected. Sources said these employees remain entitled to promotions and job placements under the regulations. Sources added that the Kuwaitis employed at Al-Dar Company, which implements service projects for KNPC, will soon receive their end-of-service benefits.

Sources also stated that the executive management of KNPC prioritizes nationals, such that it periodically announces job advertisements to increase the percentage of nationals working in the company to compensate for the decline in 2025. They revealed that in the first quarter of this year, the number of Kuwaiti workers reached 5,864; compared to about 6,007 during the same period in 2024. The percentage of national workers in KNPC stands at 92.4 percent, which, sources stressed, is a good percentage. They went on to say that Al-Khatib’s recent instructions to the leadership of the company center on the need to increase the national human capital and develop their functional capabilities. They added that KNPC organized many training courses for the national workforce in cooperation with local and international institutions.

By Najeh Bilal
Al-Seyassah/Arab Times Staff

Secretary of State Marco Rubio, right, shakes the hand of Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar, left, at the State Department, Friday, July 25, in Washington. (AP)

ISLAMABAD, July 31, (AP):The United States and Pakistan reached a trade agreement expected to allow Washington to help develop Pakistan’s largely untapped oil reserves and lower tariffs for the South Asian country, officials from both nations said Thursday.

Officials did not specify where the exploration would take place, but most of Pakistan’s reserves are believed to be in the insurgency-hit southwestern province of Balochistan, where separatists say the province’s natural resources are being exploited by the central government in Islamabad.

“We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves,” U.S. President Donald Trump wrote on his Truth Social platform.

“We are in the process of choosing the oil company that will lead this partnership,” Trump added. “Who knows, maybe they’ll be selling oil to India someday!”

Total U.S. trade with Pakistan was an estimated $7.3 billion in 2024, according to the Office of the United States Representative, which said on its website that U.S. exports to Pakistan in 2024 were $2.1 billion, up 4.4% ($90.9 million) from 2023. U.S. imports from Pakistan totaled $5.1 billion in 2024, up 4.9% ($238.7 million) from 2023, it said.

There was no immediate comment from the Baloch nationalists and separatist groups. Balochistan has long been the center of violence mostly blamed on groups including the outlawed Balochistan Liberation Army, or BLA, which the U.S. designated a terrorist organization in 2019.

Separatists in Balochistan have opposed the extraction of resources by Pakistani and foreign firms and have targeted Pakistani security forces and Chinese nationals working on multibillion-dollar projects related to the China-Pakistan Economic Corridor.

Oil reserves are also thought to exist in the southern Sindh, eastern Punjab and northwestern Khyber Pakhtunkhwa provinces. Pakistan’s Prime Minister Shehbaz Sharif welcomed the “long-awaited” deal and thanked Trump for playing a key role in finalizing it.

Pakistan had been pursuing a trade agreement since May, when Trump mediated a ceasefire between Pakistan and India following an escalation triggered by Indian airstrikes on Pakistani territory in response to the killing of 26 tourists in Indian-controlled Kashmir.

Pakistan’s Finance Ministry said in a statement early Thursday the agreement aims to boost bilateral trade, expand market access, attract investment and foster cooperation in areas of mutual interest.

The breakthrough came during a meeting in Washington between Pakistani Finance Minister Muhammad Aurangzeb and senior U.S. officials, including Commerce Secretary Howard Lutnick and Trade Representative Ambassador Jamieson Greer.

The deal includes a reduction in reciprocal tariffs, particularly on Pakistani exports to the U.S., the statement from the ministry said. “The agreement enhances Pakistan’s access to the U.S. market and vice versa,” it said. The agreement is also expected to spur increased U.S. investment in Pakistan’s infrastructure and development projects, it added.

The ministry said the deal reflects both nations’ commitment to deepening bilateral ties and strengthening trade and investment cooperation.