Friday 21 August 2020

Energy News, KPC: #Kuwait Petroleum Merges Subsidiaries to Slash Capital Spending - Bloomberg

Energy News, KPC: Kuwait Petroleum Merges Subsidiaries to Slash Capital Spending - Bloomberg:

Kuwait Petroleum Corp. is hiring a consultant to help merge its subsidiaries as the state-run company slashes capital spending by more than 25% over the next five years.

KPC will combine its eight business units into four to streamline operations, according to a person familiar with the matter. To make the change as smooth as possible, it plans to sign with a consultant next month, the person said, asking not to be identified because they haven’t finalized the contract.

To chop five-year capital spending to 19.8 billion dinars ($65 billion), KPC canceled some projects and postponed others, including exploration. It also pushed back some expected acquisitions by a subsidiary, Kuwait Foreign Petroleum Exploration Co., the person said. Kuwait’s Supreme Petroleum Council, which oversees the OPEC member’s oil industry, has approved the merger plan.

The company’s media office couldn’t immediately be reached for comment.

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