KUWAIT - Kuwait Is Consolidating Trans-National Refining & Retail Operations.

Kuwait Petroleum Corp. (KPC) has been described as "the eighth sister", with upstream and downstream systems operating in various parts of the world. It is also called a trans-national. KPC has $3 bn allocated for a new programme of overseas acquisitions to consolidate operations on both sides of Suez. Minor interests in some countries and poor operations in others have been liquidated to cut costs.

KPC's overseas upstream arm, KUFPEC, has exploration and production (E&P) activities on both sides of Suez. Its shares of oil and gas production will triple by 2010 (see OMT).

KPC's European refining and retail unit, Kuwait Petroleum International (KPI), has been rated as one of the world's largest oil firms in view of its extensive operations. KPI's head office was moved from London to Kuwait in mid-2000 to cut administrative costs and create employment opportunities for Kuwaitis.

KPC's overseas assets have been the subject of varied estimates, due to tight secrecy around its operations. The finance ministry's KIA and the oil ministry's KPC have stakes in chemical ventures in various parts of the world, including the expanding German combine Hoechst (see Gas Market Trends of this week).