Kuwait city: Kuwait Alyoum, the official gazette of the State of Kuwait, published the Supreme Petroleum Council's decision on the dissolution of the Kuwait Integrated Petroleum Industries Company (KIPIC) and its merger into Kuwait National Petroleum Company (KNPC).
According to Bahrain News Agency, the decision approves the merger of KIPIC into KNPC through absorption, with KNPC replacing the merged company in all its rights, obligations, and assets. The decision also provides for the compensation of minority shareholders other than Kuwait Petroleum Corporation for their shares in KIPIC, based on the approved valuation of the company's assets and the resulting financial entitlements.
It further approved an increase in KNPC's capital by an amount equivalent to the assessed value of KIPIC's assets, increasing the company's capital to approximately KD 2.632 billion. The decision includes amendments to certain articles of KNPC's Articles of Association in line with the merger process and the company's objectives following the completion of the relevant legal and regulatory procedures.
The measure forms part of efforts to develop Kuwait's petroleum industries sector and enhance integration among subsidiaries of Kuwait Petroleum Corporation, contributing to improved operational efficiency and the optimal utilisation of available resources and capabilities. The relevant authorities are expected to complete the legal and administrative procedures required to implement the merger decision, including signing the related documents and introducing the necessary amendments to approved records and regulations.