Kuwait Petroleum

Kuwait
Located in a region that contains 75% of the world's oil reserves, Kuwait may be small in size but it has great petroleum wealth. With an estimated 190 years of reserves at current levels of consumption, the state is one of the long-term majors in international oil production.

Kuwait's first experimental oil wells were drilled in the 1930's by Kuwait Oil Company, a joint venture between the Gulf Oil Company of the US and the Anglo-Persian Oil Company (later to become British Petroleum). Their first success was the Burgan-1 well, which came on stream in 1938. Today, the extended Burgan complex is the second largest developed oilfield in the world.

During the 1960's and 70's, Kuwait renegotiated control of its oil and natural gas resources from its foreign concessionaires and production was brought under State management to conserve wealth for future generations.

Kuwait Petroleum Corporation
In 1980 Kuwait's oil industry was revolutionised when the four state owned companies responsible for Kuwait's oil production, processing and transportation came under the control of Kuwait Petroleum Corporation (KPC); a new independent entity formed to safeguard and promote Kuwait’s oil interests through integrated planning, financial, purchasing and marketing systems.

Today, Kuwait Oil Company (KOC) manages all oil and gas exploration activity inside Kuwait. Kuwait National Petroleum Company (KNPC) oversee the local refining and marketing of petroleum products and controls the domestic service station chain within Kuwait. Responsibility for the production of fertilisers and petrochemicals lies with Petrochemicals Industries Company (PIC) and the Kuwait Oil Tanker Company (KOTC) is the State's authorised carrier of Kuwaiti crude oil, petroleum products and liquefied gases.

During early 1980's KPC also expanded its foreign operations, creating three new subsidiary companies. Kuwait Foreign Petroleum Exploration Company (KUFPEC) handles all overseas investment operations in petroleum exploration and utilisation. GlobalSantaFe Corporation specialises in the global exploration and development of oil and gas reserves and worldwide contract drilling services. In 1987 the Kuwait Aviation Fuelling Company (KAFCO) also became a KPC subsidiary. KAFCO is responsible for providing aviation refuelling services to all aircraft using Kuwait International Airport. Kuwait Petroleum International (KPI) runs KPC's downstream marketing operations in Europe and Asia and manages the Q8 retail brand.

Kuwait Petroleum International
In 1983, KPC took the opportunity to enter the downstream sector when Gulf Oil opted to dispose of most of its refining and marketing interests in Europe. KPC bought Gulf's interests in the Netherlands, Belgium and Luxembourg, and subsequently Sweden and Denmark. It was in this year that Kuwait Petroleum International (KPI) was established in London to oversee downstream marketing operations.

Early in 1984 Gulf's marketing and distribution interests were acquired in Italy, and in 1986 came the move into the UK. KPI has been quick to utilize opportunities for further acquisitions where these show good strategic fit. In 1987 it increased its penetration of the Danish market by acquiring BP's operations, thereby securing a leading market share. 1990 saw the purchase of Mobil's marketing network, which made Kuwait Petroleum the third largest company in the Italian oil industry.

Kuwait Petroleum International celebrated its tenth anniversary in Europe with the acquisition of most of BP's Luxembourg assets in 1993. 1999 saw further consolidation with the acquisition of both BP's and Aral's retail operations in Belgium.