ODC Chairman and Managing Director, Managing Director for Planning in Kuwait Petroleum Corporation (KPC) Mr. Hashim Al-Rifaai highlighted KPC's long term Strategy for the growth in its commercial activities.
Mr. Al-Rifaai presented a work paper entitled “Role of Oil in the Development Plan – Growth Strategy for KPC” at the opening session of the second day of the KPC-hosted Oil and Gas Conference held under the patronage of H.E. Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, Minister of Oil, Minister of Information, Chairman of Kuwait Petroleum Corporation's Board of Directors (KPC).
Al-Rifaai said that KPC is the main contributor to the country's revenues, with a total of USD 84 billion in annual profits, adding that "KPC assets are estimated at USD 71 billion. It is entirely state-owned and is responsible for all oil and gas-related activities, such as off-shore drilling, production, refining, marketing, retail, petrochemicals and marine transportation”.
He pointed out "KPC's long-term strategy calls for growth in all commercial activities. KPC's capital program not only matches its strategy, it is in harmony with all its requirements, as well as with the state's current and future vision for 2035."
He told the conference that "Oil plays a pivotal role in the development plan, as KPC's strategy does not rely only on revenue flows, but on securing reserves and diversifying sources, in addition to honing in the corporation's potentials”.
"With our capital program being our instrument in achieving desired strategy, we need to comprehend requirements of such strategy in all oil business-related sectors. An example for this is in the drilling domain, as we intend to reach an output of 3.5 million barrels a day of crude by 2015 and four million a day by 2020," Al-Rifaai explained.
As for local refining and retail operations, Al-Rifaai underlined that KPC is planning to expand its refining capacity to 900,000 barrels, to reach 1.4 million barrels per day.
On an international level, he said the Corporation is seeking to optimize its performance in Europe, as well as it is fetching for investment openings outside the continent; conditioned that such ventures be at least of "acceptable" profits, focusing on high-profitability markets, especially in Asia.
"KPC really enjoys a modern fleet for its marine transportation. KPC strategy is all about meeting current and future oil demands of the local market through providing the best economically and environmentally modified fuel.
"We cannot mention the state's development plan without referring to the role of oil and its contribution in local economy. KPC has set out an ambitious USD-90-billion program for its expansion strategy for the next five years," he concluded.
Finally Mr. Al-Rifaai said that KPC has launched multiple initiatives and measurements to ensure the successful implementation of all its Capital projects. Among these initiatives:
• Unifying and continuous improving of all the Capital projects phases.
• Developing an updated mechanism to follow up mega projects in order to verify the assumptions used and learn lessons to improve Capital projects management.
• Developing a special system to allocate the capital budget for companies, this will help in a better selection of projects to ensure the higher value for our capital program.
• Establishing a project management office to ensure the follow up and integration and capital project management.
• Enhance KPC's own capacity in implementing projects and related administrative skills.
• Continuous update of its contractual and commercial terms, while absorbing changes in best international practices to attract more bidders.
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