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Kuwait National Petroleum Company (KNPC) in brief

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Kuwait National Petroleum Company KNPC was established in October 1960 to develop the downstream sector in Kuwait.

Created as a joint venture between the government and the private sector, the State of Kuwait acquired the whole ownership of KNPC in 1975.

In parallel, The Kuwait Government compensated the private shareholders of KNPC.

In 1980, KNPC was integrated as the other Kuwait oil companies into Kuwait Petroleum Company (KPC) as holding and wholy state-owned company.

Through this consolidation of these national oil operating companies, Kuwait created the KPC Downstream Sector where sit KNPC together with Q8, KPI, PIC and KAPCO.

In this KPC Downstream sector, KNPC is to focus on the local operations of refining and gas processing.

Today KNPC operations are concentrated on three refineries:

 – Mina al-Ahmadi (MAA) built in 1949 and running today with 466,000 b/d of crude oil distillation capacity.

 – Mina Abdullah (MAB) started in 1958 and can process 277,000 b/d of crude oil

 – Shuaiba was the world first all hydrogen refinery and is today capable to treat 200,000 b/d of high sulfur crude oil

KNPC operates these three refineries with 5,000 employees, at 79% Kuwait citizens, to offer 943,000 b/d of crude oil total processing capacity to be compared with the 2.7 million b/d crude oil production in 2011.

KNPC Key Figures

 – Refining production 2011: 892,200 b/d

 – Refining production 2010: 862,200 b/d

 – Refining production 2009: 906,300 b/d

 – Refining production 2008: 896,700 b/d

KNPC Projects and Business Highlights

Kuwait produced approximately 2.7 million b/d of crude oil in 2011, and is targeting 3.5 million b/d in 2015 and 4 million b/d by 2020.

By comparison, KNPC actual refining capacities are limited to 940, 000 b/d leading Kuwait to export directly most of its production and to rely on the barrel prices fluctuations.

In addition the three refineries actually in operations are more than 40 years old and would need revamping and upgrade operations.

To close this gap, Kuwait is working on major projects:

 – Clean Fuels Project (CFP) is to increase capacity of  the Mina Abdulla and Mina Al-Ahmadi refineries by 800,000 b/d and to upgrade the processing operations in order to meet the international standards about the low sulfur content (1%).

 – New Refinery Project (NRP) is to build a new refinery in the Zoor area. With 615,000 b/d of crude oil capacity the Zoor refinery should be among the largest ones in the Middle East. With these two projects, KNPC would increase its capacity by 1.4 million b/d catching up partly with the Kuwait oil production

 – Mina al-Ahmadi Sulfur Handling Facilities Project is to upgrade and expand the actual sulfur handling facilities in order to improve the operating performances and increase capacities.

After years of stand by these projects representing more than $33 billion capital expenditure are moving on again as KNPC is currently proceeding to the qualification of the engineering companies and preparing bids. 

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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