Kuwait seeks energy venture with traders from Glencore to Vitol
Dubai, UAE - 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 Plc earn by buying and selling the region’s oil.
State-run Kuwait Petroleum Corp (KPC) 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.
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 PJSC.
KPC is discussing its plans for a trading venture with oil producers BP Plc, Royal Dutch Shell Plc and Total SA, as well as with Vitol and Glencore, the Kuwaiti company official said. 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.
The regional trend toward trading began with Oman, the biggest Arab oil producer that’s not a member of the Organization of Petroleum Exporting Countries. Oman formed a trading company with Vitol in 2006, then bought out its partner in 2015.