Kuwait seeks to set up energy trading venture says report
OIL AND GAS NEWS
Opec member Kuwait plans to start trading energy and not just producing it, joining other Middle Eastern producers eager to claw back some of the profit traders like Vitol Group and Glencore earn by buying and selling the region’s oil.
State-run Kuwait Petroleum Corp is in talks with both commodities dealers along with some international oil companies about forming a joint venture to trade refined products as early as next year, a KPC official said, according to a Bloomberg report.
Saudi Arabia and Oman already have trading units, and Abu Dhabi National Oil Co said earlier this month it may seek partners as it expands into trading.
Iraq’s state oil-marketing company in May began selling crude in a venture with the trading unit of Lukoil.
By trading their oil and refined products, these companies hope to squeeze more money from each barrel they produce, with help from partners like Glencore and Vitol – or in competition with them.
KPC is discussing its plans for a trading venture with oil producers BP, Royal Dutch Shell and Total, as well as with Vitol and Glencore, the Kuwaiti company official said on Monday. The venture would help sell fuel from refineries KPC is building, including one at Duqm in Oman, the official said. The international companies and traders all declined to comment.
