Kuwait announced today that it has started the merger process of two of its state-owned oil firms, KNPC and KIPIC. Kuwait National Petroleum Company (KNPC) plans to acquire Kuwait Integrated Petroleum Industries Company (KIPIC) as part of a restructuring plan by Kuwait Petroleum Corporation (KPC), news agency Kuna reported on Tuesday, citing KNPC CEO Engineer Wadha Al-Khatib.
Al-Khatib said in a statement directed to employees of both companies that the merger was based on well-studied legal and professional foundations aimed at boosting Kuwait’s oil sector companies under KPC. She emphasized that the initiative seeks to unite efforts based on each company’s specialization by expanding their capabilities and enabling greater achievements.
KIPIC and KNPC merger to drive growth
Al-Khatib voiced confidence that the KIPIC and KNPC merger would ultimately produce a successful model of transitioning into a larger economic entity aligned with the strategic ambitions of both sectors and achieving Kuwait’s Sustainable Development Goals (SDGs).
She noted that the rapidly evolving global oil and gas industries place a great responsibility on the country’s energy sector to adapt and enhance to such changing dynamics. She also reaffirmed the sector’s commitment, through KPC and its subsidiaries, to continue to fulfill its obligations to all its clients while sustaining growth in line with Kuwait’s leading position in the international energy industry.
According to the Energy Information Administration, Kuwait, a long-standing member of OPEC, held 6 percent of the world’s proven oil reserves, including half of the reserves in the neutral zone that is shared with Saudi Arabia, in 2022. Kuwait was also the third-largest crude oil producer in OPEC and the 10th largest total petroleum liquids producer in the world. Kuwait’s oil production averaged 2.62 million bpd in 2023.
KPC plans production capacity expansion
Last year, KPC announced plans to spend about $30 billion over five years to increase its oil production capacity, which stood at 2.8 million bpd in 2024. Kuwait currently has an oil production capacity of 3 million bpd.
In a podcast interview ahead of 2025 CERAWeek by S&P Global, Bader Al Attar, managing director of planning and finance at KPC, said he expects the country to maintain this level for the time being and then gradually increase to 4 million bpd by 2035 and maintain it through to 2040.
The KIPIC and KNPC merger is expected to contribute to KPC’s set target as oil prices recover from their latest lows below $60.
In the statement, Al-Khatib added that the sector continually reviews its strategic plans and reassesses its goals to ensure the success of the arrangement, with a strong focus on measuring operational performance as part of its work toward achieving long-term objectives.
Addressing employees of both KIPIC and KNPC, Al-Khatib reaffirmed her commitment to keeping them fully informed of the upcoming steps regarding the merger, underlining that staff remain the top priority for KNPC’s leadership and are vital to the success of its future goals.
