BP Signs Kuwait Deal, Plans More Layoffs
BP and Kuwait Petroleum Corporation (KPC) signed a framework agreement on Wednesday to explore possible joint opportunities for investment and cooperation in future oil, gas, trading and petrochemicals ventures.
Signed by BP chief executive officer Bob Dudley and KPC chief executive officer Nizar Mohammad Al-Adsani, the agreement paves the way for both companies to jointly invest and cooperate in oil and gas projects in Kuwait and globally.
“BP’s commitment to Kuwait dates back to our participation in the discovery of the giant Burgan oil field in the 1930s, and we are there today extending the life of the field,” Dudley said.
In September 2014, BP signed a technical services agreement (TSA) with Kuwait Oil Company (KOC) to bring BP’s expertise in enhanced oil recovery to the giant Burgan oilfield.
BP was one of the founders of the original Kuwait Oil Company (KOC), which first discovered oil at Burgan in February 1938. Years later, BP was the first oil company to be invited by the Kuwaiti Government to assist in the redevelopment of Kuwait's oil industry after the 1990 Iraqi invasion.
In addition to enhancing oil and gas recovery from Kuwait’s existing resource base, the agreement also includes the intention to study opportunities for joint investment in future oil and gas exploration both inside Kuwait and globally. Other elements of the agreement cover possible future oil and gas trading deals including LNG trading and related ventures.
Opportunities for cooperation and investment in midstream and petrochemical projects globally will also be considered under the agreement, including potentially deploying BP’s proprietary paraxylene technology as part of KPC’s petrochemicals projects.
Meanwhile, BP confirmed on Tuesday that it will layoff 500 employees at its Houston office starting in June. The layoffs are part of a broader plan to cut 4,000 jobs from the company’s upstream unit in 2016.