Kuwait running global oil market, achievement phenomenal

Kuwait running global oil market, achievement phenomenal

CONGRATULATIONS to two Kuwaitis – Haitham Al-Ghais for being appointed as the Secretary General of OPEC, and Jamal Al-Loughani for the position of Secretary General for OAPEC (Organization of Arab Petroleum Exporting Countries). Kuwait’s achievement in the oil sector is phenomenal, as it was the first ever national oil company to build its own refinery, despite extreme opposition from the owners of Kuwait’s BP and Gulf Oil.

A hefty premium was imposed on the sale of crude to Kuwait National Petroleum Company (KNPC) at about 3 US cents per barrel, despite the Kuwaiti government being the owner of 60 percent of shares and Kuwaiti individuals owning 40 percent. Also, severe restrictions were imposed on the sale of new refinery products to any country and company that BP and Gulf Oil trade with. KNPC kept on operating and making profits until the full nationalization of KOC in 1975.

With it came the establishment of the Kuwait Oil Tankers Company (KOTC), which is the first national company to venture on oil transportation. This was followed by the formation of Kuwait’s Petrochemical Industries Company (PIC) with OPEC and other national oil companies, becoming a pioneer in selling petroleum products globally.

In 1983, we needed to close