KUWAIT - East Europe.

In March 1990, KPI signed a preliminary agreement with the Hungarian government for up to 100 service stations in that country and to assist with the revamping of a Hungarian oil refinery.

A deal was signed in January 1991 between KPI and state-owned Hungarian companies, Afor and Technoimpex, to set up an oil distribution JV called Kuwait-Afor. KPI paid $6.5m for 50% in the JV. Afor held 45% and Technoimpex 5%. Kuwait-Afor took over 17 service stations in Hungary, which it modernised and upgraded to sell products under the Q8 name.

However, KPI sold all its Hungarian retail assets in 1996. By May 1991, KIO had acquired about 8% in Technoimpex for $4m. In December 1991 Kuwait and Budapest signed a protocol covering the development of the Hungarian oil and gas industry and the reconstruction of the Kuwaiti oil industry.

Kuwait also held talks with the government of Poland in 1990 about the possibility of participating in various downstream ventures in that country, including equity for KPI in one of the Polish refineries. But no agreement was reached.

KPC Market Shares East Of Suez: KPC is to have refineries east of Suez with a total capacity of about 400,000 b/d before 2020, together with storage facilities and other logistics, and retail units for 400,000 b/d of petroleum products including LPG produced in Kuwait for export.

KPC has been negotiating new joint venture refineries and retail businesses in Pakistan, India, Thailand, Singapore, Indonesia, China, South Korea and other countries in this huge and fast growing market.