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 Kuwaits 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 BPs proprietary paraxylene technology as part of KPCs chemicals schemes.
The latest announcement from BP comes after state-owned upstream operator Kuwait Oil Company (KOC) said in 2015 that BP, Frances 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.