The Supreme Petroleum Council of Kuwait has officially approved the merger of Kuwait Integrated Petroleum Industries Company (KIPIC) into Kuwait National Petroleum Company (KNPC), according to a report by local Arabic-language newspaper AlRai Media on Sunday.

The report, citing official gazette Kuwait Al-Youm, said under the decision, KIPIC will cease to exist as legal corporate entity, with KNPC legally succeeding the company in all of its assets, rights, obligations, and liabilities.

To facilitate the merger, the Council approved an increase in KNPC’s capital by an amount equivalent to the book value of KIPIC’s assets as of 31 March 2026. Following the integration, KNPC’s total capital is projected to reach approximately 2.632 billion to 2.635 billion Kuwaiti dinars ($8.51 billion to $8.52 billion).

KNPC’s Articles of Association will be amended to accommodate KIPIC’s extensive downstream operational scope. The expanded portfolio will cover oil and gas exploration and production, refining and processing, transport and storage, sales, marketing and exports. Additionally, it grants KNPC the authority to establish petrochemical and chemical industries, alongside managing all associated supporting operations.

The Minister of Oil, who also serves as the Chairman of the Board of Directors of the state-owned Kuwait Petroleum Corporation (KPC), has been delegated the authority to determine the official effective date of the merger and its implementation. 

(Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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