A new company is being created to take responsibility for providing services in the oil sector such as security, health services and logistic services for employees.

The company, to be called the Petroleum Services Company, is being established under decree no 256 of the year 2004 issued on September 8, 2004 appointing the members of the board of directors of KPC, and Resolution No 21 of the year 2004 issued by the Minister of Energy and chairman of KPC, regarding the responsibilities of the Managing Director, Petroleum Services, Sheikh Talal Al Khaled Al Sabah.
Several measures have already been taken in preparation for the establishment of the new company.
The required data sheets and documents and a timetable of the steps that should be taken to complete the foundation procedures have been drawn up.
In an interview, Sheikh Talal Al Khaled highlights the main policies, activities and duties of the new company.

What is the reason for establishing the Petroleum Services Company?
The need to establish the new Petroleum Services Company is in harmony with KPC's direction aimed at bolstering work performance and competency levels at the corporation and all subsidiary companies. The new company will be entrusted with handling the non-core activities and supporting the subsidiary companies.
Additionally, the strategic directions of the corporation aim towards unifying and organising specialities in the oil sector. Therefore, it was deemed prudent to establish a central entity, which is entrusted with providing services for all subsidiary companies and unifies the services sector under one umbrella in the same manner as the international oil companies.
Hence, the purpose of establishing the new Petroleum Services Company is to alleviate the burden the corporation and subsidiary companies shoulder and allow them to focus on their core activities and boost their performance level.
At the same time, the new company will unite efforts and enhance the quality of services offered and support the service sector, not to mention creating new job opportunities for Kuwaiti nationals.

What are the main responsibilities of the company?
The company will be entrusted with auxiliary and logistical services for the corporation and subsidiary companies. These include security services for our personnel and oil installations and equipment, and health services for all workers in the oil sector that include the Ahmadi Hospital and health clinics in the refineries. The company will also render services related to the recruitment of manpower to the oil sector.

What assets are expected to be transferred from the oil companies to the new company?
This matter, of identifying assets involved in the core objectives of the company and thus to be transferred, will be carried out in coordination with the other oil companies. The assets will be transferred gradually to avoid any disruption to work progress at our subsidiary companies.

When will the company become operational?
We are currently taking the necessary measures to ensure that the company starts work smoothly and comprehensively. In this respect, work is progressing in two parallel lines. The first one is completing the legal and administrative procedures with the concerned state authorities. The company's basic organisation and its establishment have been approved by KPC's board and we are awaiting approval from the Supreme Petroleum Council. Simultaneously, we are completing the financial, administrative, and organisational structure and studying the transfer process and all matters related to unifying the systems.
It is important to mention that the process of transferring staff working in the service activities to the new company will be carried out in co-ordination with the subsidiary companies, staff unions, and in accordance with the criterion and standards applied in the oil sector in a manner that protects all their rights and benefits.
It is well known that the key to the success of any company can be attributed to its appropriate and strong foundations. Such is the case of KPC, which derives its strength and success from its strong roots and from the right processes. Therefore, the new company will start its operations after verifying all aspects related to the unification of systems to ensure a smooth work progress.

In your view, what is the outlook for KPC and the oil sector as a whole?
KPC has an important and vital role to play as the backbone of the national economy. Personally, I expect a spectacular success for the main projects launched by KPC, thereby consolidating the progress of the oil sector. Indeed, everything indicates that the Kuwaiti oil sector will soon enter a new era of progress and prosperity.
KPC has initiated the implementation of several vital projects such as the privatisation of several KPC activities including the privatisation of a number of fuel stations, and of the oil blending activity which was sold to a company of the private sector, and the participation of the private sector in large projects such as the creation of the Calciner Coke Plant and the "fourth refinery" project.
An alliance has recently been built with Dow Company for the manufacture of olefins and petrochemicals. These projects are expected to yield high profits and returns for Kuwait.
This will also pave the way for increasing and diversifying the sources of revenues, activating the national economic cycle and promoting production and industrial capacities in all fields with a view to increase returns, diversify sources of income and promote the position of Kuwait as a major world producer of energy.