Through its establishment in 1960, Kuwait National Petroleum Company was the first, and indeed the only, national company in the region where the management and exploitation of hydrocarbon resources were carried out by foreign companies. KNPC’s vision at the time was to stimulate development and provide exemplary expertise in processing local resources. From its perspective, Kuwait National Petroleum Company represented a model for the natural capabilities inherent in the management and exploitation of oil resources that have developed into a large source of income capable of sustaining the society's welfare and financing its overall development.
In 1975, The State of Kuwait acquired the entire ownership of KNPC, as its operations became highly integrated into the production of petroleum products from its three refineries, Shuaibah, Mina Al-Ahmadi, and Mina Abdulla, and marketing them in the local and international markets.
In 1980, Kuwait Petroleum Corporation (KPC) was established, as a State-owned asset, and all other oil/gas companies in Kuwait, including KNPC, became a subsidiary of KPC. Currently, KNPC has two state-of-art Refineries, Mina Abdullah Refinery (MAB) and Mina Al-Ahmadi Refinery (MAA), providing that Shuaibah Refinery was shut down in March 2017 following the kick-off start of the Clean Fuels Project (CFP), which was completely commissioned on March 2022.
Mina Abdullah Refinery and Mina Al-Ahmadi Refinery host advanced refining technologies, following the revamping of the two Refineries in the 1980s. Among the most important units at MAB Refinery are two CDUs, 4Hydrogen production units, 2 ARD units, a Vacuum Distillation unit, 2 delayed Coker units and a Hydrocracking unit. As for MAA Refinery, it now hosts four Trains of ARDS units, a VGO Hydrocracker, and an FCCU, besides a host of Hydrogen production and Hydrogen Recovery units, Distillate Hydrotreaters, Sulfur recovery units, and consolidated Sulfur granulation and storage facilities.
On the domestic scene, KNPC is responsible for the sale and distribution of all petroleum products in the local market. KPC and KNPC put into effect the trend towards privatization and started, in 2004, to transfer its Local Marketing assets, such as the lube oil plant and the Filling Stations, to private companies. KNPC owns 65 fuel filling stations throughout the State of Kuwait, 4 of which are mobile. A five-year plan is underway to build 82 other fuel stations in response to the increasing demand for gasoline and other fuels in line with urban expansion and the establishment of new residential cities.
At the beginning of 2022, KNPC implemented several major projects aimed at enhancing conversion capabilities, most importantly the Clean Fuels Project (CFP) to expand and develop Mina Abdullah and Mina Al-Ahmadi refineries, which have become an integrated refining complex with a total capacity of 800,000 BPD. This project enhances Kuwait's global position in the oil refining industry.
In addition to the advanced increase in transformational capabilities, operational excellence, reliability, and safety levels have been greatly enhanced in Mina Al-Ahmadi and Mina Abdullah refineries, and they are also using energy efficiently. The two refineries now produce high-quality products that comply with the most stringent environmental requirements, such as Euro4/Euro5, which contributes to opening new markets for the company's products. These products will meet the domestic and international demand for clean fuels.
The products produced by the project units are characterized by their low environmental impact due to their significantly low content of nitrogen oxides, sulfur, and other pollutants. For example, the sulfur content in gasoline has been reduced from 500 ppm to 10 ppm, and in diesel, it has been reduced from 5,000 ppm to 10 ppm. All this will allow the company to break into new markets.
Another important project for the KNPC is the "Fifth Gas Train", which is a strategic project at the regional level, and part of the KPC's strategy to raise Kuwait's ability to produce and manufacture gas to meet local needs. After the completion of the project, the Gas Processing capacity of KNPC will reach 3.125 billion SCFPD.
In the meantime, the Company directed attention to its human resources by implementing a policy of steady growth of its national manpower and providing its sites with highly qualified and skilled human resources. Up to March 2022, the percentage of Kuwaitis in the total manpower was around 90.7% of the Company labor force, which totaled 5,643 employees.