Ministry of Oil: Petroleum Industries Zone handed over to Kuwait Oil Company
The Petroleum Industries Zone has been handed over to Kuwait Oil Company, with the Shahin project funded and granted a special credit rating.
Translated by Qiyas from الجريدة — Original source
A feasibility study for the Petroleum Industries Park (PIP) project has been launched under the Local Content 2040 Strategy of Kuwait Petroleum Corporation (KPC), aiming to diversify oil-related industries and enhance private sector participation.
According to official documents obtained by Al-Jarida, the Supreme Committee for Local Content at the institution issued directives to assign this project to Kuwait Oil Company (KOC). Consequently, the company is currently finalizing the project handover and implementation phases following the completion of the feasibility study, leveraging its technical expertise in infrastructure and industrial development. KOC has worked intensively with Kuwait Petroleum Corporation (KPC) by conducting a comprehensive review of the feasibility study, providing detailed technical comments, updating project requirements, and setting revised objectives that reflect the project’s evolving status.
The data indicated that numerous meetings and workshops were held between teams at the institution and KOC to clarify requirements and resolve outstanding issues, thereby building consensus among stakeholders. This cooperation was instrumental in establishing a clear framework for the next phase, which includes preparing a Statement of Requirements (SOR) and advancing preliminary engineering design to fully implement the project.
Furthermore, during the 2025/2026 fiscal year, KOC joined KPC in financing the “Breen” (Shahin) project, which contributes to smart innovations to generate asset returns through both leased and non-leased oil export lines, aiming to secure long-term financing while benefiting from a fully operational business model. In this context, the team initiated global administrative outreach by preparing comprehensive scope-of-work models that encompass legal, technical, and financial inclusivity, aligned with the project’s nature, complexities, and timeline.
This effort helped accelerate engagement with key stakeholders and facilitated early communication with investors and financiers, thereby strengthening progress and ensuring deal stability.
The Shahin project achieved outstanding results in credit ratings from Fitch and Moody’s, being rated at the sovereign rating level for Kuwait. This reflects the strength, operational precision, and robustness of the due diligence framework. These achievements have enhanced the project’s financing viability, increased its attractiveness, and reinforced its credibility internationally, supported by the strategic backing of Kuwait, KPC, and KOC.
