KUWAIT CITY: The Kuwait Petroleum Corporation (KPC) is encouraging private sector participation in various investments based on refined products produced by Kuwait’s refineries. According to informed sources, KPC aims to support the sector as well as reduce budgetary expenditures. It spent approximately KD 1 billion between 2024 and 2025 on goods and services procured from local suppliers and contractors.

This spending refl ects KPC’s commitment to enhancing local economic value by prioritizing national supply chains. In this context, KNPC has strengthened its local capabilities by increasing the share of local suppliers and service providers in its projects to 65.8 percent, surpassing the 50 percent target. As part of its efforts to stimulate the private sector, KPC launched the “K-Tendering” digital platform, designed to connect local suppliers with opportunities across the oil and gas sector.

The platform also enables the publication of long-term supply and demand forecasts extending up to 2050. The sources explained that KPC knows that the extensive supply chains in the oil and gas sector present unique opportunities to stimulate local industries and enhance national resilience. Through its local content management strategy, KPC ensures that procurement practices not only meet operational requirements but also generate tangible benefits for Kuwaiti companies, SMEs, and contractors. This approach is in line with the state’s development agenda under New Kuwait 2035 vision, which aims to diversify the economy beyond hydrocarbons and enhance value addition in the local market.

To further enhance national value, KPC integrates local content requirements into downstream industry contracts, ensuring greater participation of local suppliers, the creation of job opportunities for citizens, and maximization of economic returns within Kuwait. KPC is also conducting a comprehensive feasibility study for the establishment of a state-of-the-art petroleum industrial complex, which is expected to serve as a catalyst for industrial innovation and economic diversification beyond hydrocarbons. Exploration and production activities further amplify this impact, as annual payments to contractors cover drilling, engineering, logistics, and other specialized technical services.

These expenditures not only support the immediate execution of projects but also contribute to longterm capacity building by enabling local companies to adopt international standards, enhance technical expertise, and integrate into global supply chains. The sources noted that KPC launched its 2025 strategy to support local products and attract private sector investment into domestic industries, thereby strengthening national industrial capabilities. They said this initiative was not merely a financing mechanism but also laid the foundation for major projects such as the establishment of a regional industrial hub and the expansion of a new network of fuel stations.

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