Kuwait Petroleum Corp. (KPC) is eyeing a stake in Indian petroleum marketing firm IBP Co. in a bid to diversify operations, KPC Deputy Chairman and Chief Executive Officer (CEO) Nader Sultan said on March 27th.
“We submitted an expression of interest to buy IBP assets in India,” Sultan said. He indicated that KPC was looking beyond domestic upstream operations for growth and was training its sights on expanded upstream and downstream operations overseas.
“KPC needs to diversify from the volatility of simply selling crude … With no control over volume, we have little opportunity for increasing revenues from domestic upstream,” Sultan said.
“The next potential area for growth is downstream. The opportunity for KPC is to create partnerships and invest jointly in infrastructure,” the CEO added.
KPC, one of the world’s 10 largest oil firms, has significant downstream investments abroad, including refineries in Europe, and has plans to enter Asian, French and North American downstream markets.
Sultan indicated that downstream opportunities for the company were “far greater” that upstream activities overseas, where the company produces only 40,000 b/d.
“Any growth [in upstream overseas] will have to be substantial to have a serious effect on our volumes and revenues,” he said.
At least 12 other international companies, including Royal Dutch/Shell and Caltex, are also vying for the 33.6 percent stake in IBP.
© 2001 Mena Report (www.menareport.com)