Through its establishment in 1960, Kuwait National Petroleum Company (KNPC) was the first national company in the region where the Hydrocarbon resources were managed and exploited by foreign companies. The Company’s vision was stimulating development and providing an exemplary experience in handling national resources. In its perspective, KNPC came as a model for the indigenous potential to undertake management and exploitation of the oil resources, which started to develop into a colossal source of income capable of sustaining the society welfare and financing its overall development.
In 1975, the State of Kuwait acquired full ownership of KNPC. Its operations were highly integrated mainly relying upon its oil refinery in Shuaiba and the marketing of petroleum products from Al-Ahmadi Refinery, in both local and international markets.
In 1980, Kuwait Petroleum Corporation (KPC) was established, as the State owned asset and all other oil companies in Kuwait, including KNPC, became KPC subsidiaries. Currently, KNPC has two state-of-the-art Refineries, namely Mina Abdullah Refinery (MAB) and Mina Al-Ahmadi Refinery (MAA). Shuaiba Refinery was shut down in March 2017 after the kick-off of the Clean Fuels Project (CFP). The total production capacity of both Refineries is 736,000 bpd of crude oil, and a gas processing capacity of 2.5 billion scfpd.
MAB and MAA 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, 4 Hydrogen production units, 2 ARD units, a Vacuum Distillation unit, 2 delayed Coker units, and a Hydrocracking unit. The MAA Refinery 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 petrol stations, to private companies.
KNPC has 57 filling stations, including 2 mobile stations, all over Kuwait. A 5-year plan to build another 99 stations is already underway to respond to the growing demand for gasoline and other fuels.
Currently, KNPC is carrying out several major projects that aim to expand its refining capacity and enhance conversion capabilities, most importantly is the Clean Fuels Project (CFP). After the completion of the CFP in early 2020, KNPC refining capacity will be 800,000 bpd. With the high-quality low-sulfur (Euro-4 & Euro-5 grades) products, KNPC seeks to penetrate new markets. Gas Train-5 is expected to be completed early 2021, whereby KNPC gas processing capacity will then reach 3.3 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 2020, the percentage of Kuwaitis in the total Manpower was around 88 % of the Company labor force, which totaled 6,322 employees.