Oil Minister Tariq Al-Roumi has described the completion of the merger of the Kuwait Integrated Petroleum Industries Company (KIPIC) into the Kuwait National Petroleum Company (KNPC) as a landmark achievement that advances Kuwait’s long-term strategy to build a more integrated, efficient, and sustainable oil industry.
Speaking at a ceremony marking the completion of the acquisition, Al-Roumi said the merger represents a pivotal step in the comprehensive restructuring of the oil sector and aligns with the Kuwait Petroleum Corporation’s (KPC) 2040 strategic vision.
The event was attended by Ahmadi Governor Sheikh Hamoud Jaber Al-Ahmad Al-Sabah, KPC Vice Chairman and Chief Executive Officer Sheikh Nawaf Saud Al-Nasser Al-Sabah, KNPC Chief Executive Officer Wadha Al-Khatib, and senior oil sector officials.
Al-Roumi said the integration would strengthen coordination across the oil value chain by aligning exploration, production, refining, petrochemicals, and global marketing operations.
He added that consolidating logistical operations and accelerating digital transformation would improve operational efficiency, support faster decision-making, and enhance the sector’s competitiveness amid rapidly evolving global energy markets.
The minister noted that the restructuring supports the objectives of Kuwait Vision 2035, which seeks to reinforce the country’s position as a regional and international energy hub.
He also acknowledged the continued support of His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah, and His Highness the Prime Minister Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah for the oil sector’s development plans.
KPC Chief Executive Officer Sheikh Nawaf Saud Al-Nasser Al-Sabah said the merger forms part of the corporation’s restructuring programme launched in 2019 to improve operational efficiency while protecting employees’ rights.
He highlighted earlier restructuring initiatives, including the transfer of liquefied petroleum gas cylinder plants from the Kuwait Oil Tanker Company to KNPC and the transfer of retail fuel operations to Kuwait Petroleum International.
According to Sheikh Nawaf, the restructuring has generated significant financial benefits, including savings of approximately KD30 million through the reorganisation of information technology contracts and annual savings of around KD6 million through improved human resource allocation, reports Al-Rai daily.
KNPC Chief Executive Officer Wadha Al-Khatib said the merger was one of the largest organisational projects undertaken by the company, involving more than 2,500 administrative, technical and financial procedures over a two-year period beginning in April 2024.
She noted that more than 1,350 employees from KIPIC were successfully integrated into KNPC, creating a unified workforce of over 7,650 employees. Al-Khatib said the merger had already demonstrated its value during recent regional developments, with all operations managed effectively through a single crisis management structure.
She added that KNPC has entered a new phase in its more than 65-year history following the integration of KIPIC, the Al-Zour Refinery, domestic liquefied gas cylinder plants, aviation fuel operations, and export terminals, creating one of Kuwait’s largest energy entities capable of supplying domestic energy needs and producing internationally compliant petroleum products for local and global markets.
