Kuwait has officially approved a major restructuring within its oil sector, dissolving the Kuwait Integrated Petroleum Industries Company (KIPIC) and merging its operations into the Kuwait National Petroleum Company (KNPC) through a full legal acquisition process.
The decision was issued by the Supreme Petroleum Council and published in Kuwait Alyawm, following an earlier resolution at its meeting No. 132 (2026/4) held on April 29, 2026. It was subsequently endorsed by the Extraordinary General Assembly of KIPIC, which approved the complete merger and dissolution of the company.
KNPC to Assume All Assets, Rights, and Obligations of KIPIC
Under the approved framework, KNPC will fully replace KIPIC in all legal rights, obligations, and responsibilities, effectively absorbing the company’s operations, assets, and liabilities as part of the merger.
The Assembly also authorized the Minister of Oil, who also serves as Chairman of the Board of Directors of Kuwait Petroleum Corporation (KPC), to determine the official effective date of the merger and oversee its implementation, including the final termination of KIPIC’s legal status. The Minister may also delegate these powers as needed.
Capital Increase and Corporate Restructuring
As part of the merger, the Extraordinary General Assembly of KNPC approved a capital increase equivalent to the book value of KIPIC’s net assets as of March 31, 2026. This adjustment raises KNPC’s capital to 2.632616 billion dinars, fully paid and distributed over an equivalent number of shares.
The Assembly also approved amendments to KNPC’s Articles of Association:
- Article (5): Capital Structure — KNPC’s capital is set at 2.632616 billion dinars, with provisions allowing future increases or decreases by decision of the Extraordinary General Assembly upon recommendation of the Board of Directors, in accordance with the Companies Law.
- Article (4): Expanded Objectives and Operations — KNPC’s mandate will now formally include the full range of upstream, midstream, and downstream petroleum activities previously associated with KIPIC. This includes exploration, production, refining, processing, manufacturing, transportation, storage, marketing, sale, and export of oil, gas, and hydrocarbon products, as well as petrochemical development and related industries.
The company’s expanded scope also covers cooperation with regional and international oil companies and participation in supporting and developing the broader energy sector.
Full Legal and Administrative Transition
The merger framework stipulates that KNPC will assume all rights and obligations previously held by KIPIC without exception, ensuring continuity of operations under a unified corporate structure.
The Minister of Oil has also been authorized to approve the final Articles of Association and internal regulations of KNPC, sign all necessary legal documents, and complete all procedures required to formally announce and implement the merger.
The restructuring marks a significant consolidation within Kuwait’s petroleum sector, aimed at streamlining operations and strengthening integration across downstream and upstream energy activities under a single national entity.
