#Kuwait Petroleum Said to Reassess $500 Billion Spending Plan - Bloomberg

Kuwait Petroleum Said to Reassess $500 Billion Spending Plan - Bloomberg:

Kuwait Petroleum Corp. is reassessing plans to spend about $500 billion in capital investment and may decide this year to combine its eight business units into four to streamline the company, according to a person familiar with the matter.

Lower oil prices, Kuwait’s reduced output under a deal by OPEC to pump less crude, and a reevaluation of how best to spend the money have prompted the review, the person said, asking not to be identified as the potential changes have yet to be approved. The company announced plans last year to spend about $500 billion on capital projects until 2040.

State-run KPC also may merge Kuwait Foreign Petroleum Co., Kuwait Oil Tanker Co., Kuwait Gulf Oil Co. and Kuwait Integrated Petroleum Industries Co. into larger units as part of its long-term strategy, the person said. The consolidation would still require approval from the government’s Supreme Petroleum Council, the person said.