OPEC member Kuwait has decided to cut down the number of its government oil companies to 3 within a unique restructuring plan carried out by a US firm, a local newspaper reported on Wednesday. 

In 2020, State oil operator Kuwait Petroleum Corporation (KPC) appointed the US-based consultant Strategy& to carry out astudy for restructuring which involves mergers to reduce the eight operating oil firms in the Gulf country. 

The Arabic language daily Alanba quoted a KPC source as saying the parent company would remain the manager of the country’s massive oil sector. 

After restructuring, KPC will supervise three autonomous companies covering crude production and exploration, refining and other downstream operations inside Kuwait, and oil industry operations abroad, the report said. 

“The US company is expected to finish its study on Kuwait’s oil sector restricting before the end of 2021 after the plan was approved by the Government and the Supreme Petroleum Council,” it added. 

Officials and industry sources in Kuwait, which controls the world’s sixth largest oil deposits, said restructuring and merger of local hydrocarbon firms would produce many benefits, including cutting effort and decision-making time, saving funds, and preventing duplication in projects and operations. 

In comments in 2020, Kuwait’s then acting Oil Minister Khalid Al-Fadil said that plans to restructure of the oil sector would be implemented gradually and that it includes merger of small firms to create large units. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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