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KUWAIT TO RAISE OIL OUTPUT

The Europoort refinery

KPC to sell loss-making assets to cut costs

KUWAIT, February 9, 2016

State-run Kuwait Petroleum Corp (KPC) plans to sell loss-making assets to cut costs as low oil prices pressure its finances, state news agency Kuna has reported.

Nizar Al-Adsani, chief executive of KPC, was quoted as saying the company had started efforts to sell its Europoort refinery in the Netherlands and had decided to shut a fertiliser plant of Kuwaiti unit Petrochemical Industries Company.

KPC's affiliates, including Kuwait National Petroleum Company and Kuwait Oil Company, have already cut costs by 15-20 percent, he added.

As part of the exercise, KPC plans to set up a company to manage the integration of its new refinery at Al-Zour and a petrochemical complex and liquefied natural gas facilities, Al-Adsani said.

Meanwhile, another report said Kuwait plans to raise its crude oil production by 150,000 barrels per day (bpd) in the third quarter and aims to sign new export deals with European customers soon.

New contracts are to be signed soon with a number of European companies "with good prices and in large volumes", Nabil Bouresli, managing director of international marketing at KPC, told Kuna.

Kuwait currently produces 3 million bpd and plans to boost its output to 3.15 million bpd in the third quarter of 2016, he said.

He said KPC is currently focusing on the European market which is facing "fierce competition" among producers.

His comments indicate that Gulf Opec producers are not wavering in their strategy of defending market share despite low oil prices. - Reuters




Tags: Kuwait | KPC | pertroleum |

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