Kuwait Petroleum Corporation (KPC) has met with several of its subsidiary firms to discuss plans to pare back salaries and cut expenses as the state oil company grapples with the low price of crude.
Among the measures being considered are lay-offs and the suspension of bonuses, as well as a move to hire expats on a contractual basis in order to reduce the cost of their salaries and associated costs, such as medical, travel and housing expenses.
Other changes include cutting back on flight costs and travel allowances for senior officials. Sources told local media that the plans could save up to $630 million a year.
The local that KPC had met with officials from Kuwait National Petroleum Company (KNPC), Kuwait Oil Company (KOC) and Petrochemical Industry Company (PIC) to discuss the changes.
However, sources also told the newspaper that oil sector employees have refused the measures, saying they had been guaranteed the privileges by law and the treaties stipulated in KPC’s subsidiary companies’ charts.
KPC’s CEO Nizar Al Adasani said the financial reforms will allow the private sector and Kuwaiti citizens to play larger roles in bidding for and co-owning oil service activities.
He said a dedicated plan was being prepared to launch and privatise 42 petrol stations, despite the rationalisation initiatives covering both citizens and expat employees.