Kuwait Oil Minister’s Strategic Shake Up: What’s Next?

Kuwait’s Oil Minister Hani Husain has used the crisis in state-owned Kuwait Petroleum Corporation (KPC) – triggered by a court ruling for it to pay $2.2bn in compensation to Dow Chemical over a cancelled petrochemicals joint venture – to radically change its management.

Last week a new board of directors was chosen, and Mr Husain appointed a new CEO, and separated the positions of chief and chairman of the board in KPC’s subsidiaries (see table). These dual positions were previously held by one person in each firm. On 19 March he followed the moves up with sweeping out the heads and deputy chiefs of most KPC subsidiaries by implementing the previously non-enforced KPC policy of retiring anyone who has been 35 years in the company. Others were “gently asked to leave,” someone who has worked closely with Mr Husain said.

“Hani used the Dow crisis to overhaul the direction and management [of KPC],” he said. “He argued that there was the Dow crisis and the Shell crisis, so now is a good time for an overhaul.” Government and parliament investigations into an $800mn consultancy contract with Shell to work on an upstream gas project have resulted in the deal being referred to the public prosecutor. (CONTINUED - 896 WORDS)

DATA INSIDE THIS ARTICLE

table Kuwait's New Oil and Gas Leadership