$50 Million Savings from Merging 'Quepco' with 'KNPC'

“Zour” Proves Its Capability to Process Heavy Kuwaiti Crude Oil

By Najeah Bilal

The ambitious restructuring strategy of the Kuwait Petroleum Corporation (KPC) has yielded tangible positive outcomes and historic returns for the country’s oil sector, particularly through the integration of the Kuwait Integrated Petroleum Industries Company (KIPCO) under the umbrella of the National Oil Company (NOC). This strategic move decisively ended years of consecutive losses suffered by KIPCO, marking an exceptional financial and operational turnaround since NOC assumed its leadership, directly supported by operations at the Zour Refinery. This progress preceded the announcement of the company’s full and final transformation and complete merger initiatives, which were completed in 2026.

Data obtained by Al-Siyasa confirms that the merger decision resulted in a comprehensive set of outcomes, primarily focusing on enhancing the efficiency of utilizing heavy Kuwaiti crude resources, strengthening operational reliability, and developing refinery flexibility in handling various crude types.

On the front of cost rationalization and profitability enhancement, which stands as the top priority for executive management, the same information revealed that KIPCO achieved a total financial saving of $49.88 million. This figure includes $17.68 million generated through a profitability enhancement program during the 2025/2026 fiscal year.

In terms of operational execution, the Zour Refinery achieved notable success in implementing landmark initiatives, including the successful introduction of “Am Nagha” crude into the heavy Kuwaiti crude processing mix. This enabled continuous processing, thereby enhancing the diversification of processed heavy crude blends and achieving a sustainable, standard processing rate of 120,000 barrels per day of heavy Kuwaiti crude.

This step was complemented by the successful processing of a new blend of medium-heavy crude oil, consisting of 50% “Ratqa” and 50% West Kuwait crude, in the crude distillation unit. Operations were conducted at varying rates ranging from 30,000 to 60,000 to 100,000 barrels per day. Laboratory and practical results demonstrated the refinery’s superior capability to process heavy crudes without any operational constraints, while fully maintaining high product quality.

Information indicates that these technical successes extended to maximizing the processing of “Eocene” crude at the Zour Refinery by absorbing Chevron Saudi Arabia’s entire share. This allowed the refinery to operate and process heavy crude at maximum capacity, with processing rates jumping to 360,000 barrels of “Eocene” crude in January 2026. This significantly strengthened the company’s market position and profitability.

These initiatives, among others, raised overall economic efficiency through the refining of new crudes and the development of oil products. Additionally, a strict program was implemented to improve energy consumption and rationalize its use across various operational units, paving the way for the Kuwaiti refining sector to enter a new phase characterized by comprehensive efficiency and global competitiveness.

According to the same information, this integrated system culminated in a prominent marketing and export achievement: the export of the first shipment of low-sulfur jet fuel meeting strict global specifications, with a sulfur content not exceeding 500 parts per million, during the previous year. This shipment opened new global markets and contributed to added value that supported the refinery’s overall profit margin.

It is worth noting that “Kuwait Clearing and Depository Company” (Kuwait Clearing) concluded its operations for the fiscal year 2025/2026 with impressive net profits amounting to KD 239,152,417, compared to only KD 52.2 million recorded in the 2024/2025 budget.