BP signs agreement with Kuwait Petroleum Corporation

31 March 2016

Deal paves way for joint investment and increased cooperation on oil and gas projects

The UK’s BP has signed a framework deal with state-owned Kuwait Petroleum Corporation (KPC), paving the way for joint investment and increased cooperation on oil and gas projects.

A statement released by BP on 30 March said both companies had agreed “to explore possible joint opportunities for investment and cooperation in future oil, gas, trading and petrochemicals ventures”.

The agreement involves collaborating on enhancing oil and gas recovery from Kuwait’s existing resource base.

It includes cooperation on studying opportunities for joint investment in future hydrocarbons exploration both inside Kuwait and globally, as well as possible future trading deals, including trading liquefied natural gas (LNG).

Cooperation on midstream and petrochemicals projects will also be covered by the deal, including potentially deploying BP’s proprietary paraxylene technology as part of KPC’s chemicals schemes.

The latest announcement from BP comes after state-owned upstream operator Kuwait Oil Company (KOC) said in 2015 that BP, France’s Total, US-based Chevron and UK/Dutch oil company Shell were all in negotiations with Kuwait to secure deals for enhanced technical service agreements (ETSAs) as part of a broader scheme to boast Kuwaiti production.

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