Kuwait state-owned petroleum firm KPC has taken steps towards merging its two upstream subsidiaries, KOC and KGOC according to documents seen by local daily al-Seyassah. Plans were put forward earlier this year as part of a broader streamlining effort (MEES, 12 April).
Seyassah says that KPC intends “to transfer KGOC shares to KOC.” KGOC holds Kuwait’s 50% stake in joint ventures at the Partitioned Neutral Zone (PNZ) shared with Saudi Arabia; the offshore Khafji Joint Operations (KJO) and the onshore Wafra Joint Operations (WJO). The report says KPC expects approximately $1.25bn in annual cost efficiency by merging the two firms’ operations. KPC plans to announce two further mergers involving four more subsidiaries next year, the report adds. (CONTINUED - 116 WORDS)