Kuwait oil sector dispute unsettles contractors

17 June 2015

State-owned oil company clashes with ministry over board appointments

  • Oil Minister Ali al-Omair is looking to appoint new board members at Kuwait Petroleum Corporation
  • The move is being resisted by CEO Nizar Mohammad al-Adsani
  • The dispute is increasing uncertainty in Kuwait’s oil and gas sector

A dispute between Nizar Mohammad al-Adsani, the CEO of state-owned oil company Kuwait Petroleum Corporation (KPC), and the country’s Oil Minister Ali al-Omair is unsettling contractors and increasing uncertainty in the Kuwaiti energy sector, according to industry sources.

The dispute is focused on efforts by the ministry to appoint new members to KPC’s board.

Al-Adsani has said the Oil Ministry does not have the legal power to make appointments.

“The current conflict between the CEO of KPC and the Oil Ministry is the worst the country has seen in years,” says one industry source.

So far projects haven’t been impacted, but it is causing uncertainty and worrying contractors according to local agents.

KPC is a government-owned holding company and has eight subsidiaries, including the upstream operator Kuwait Oil Company (KOC), and downstream operator Kuwait National Petroleum Corporation (KNPC).

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