Kuwait seeks en­ergy ven­ture with traders from Glen­core to Vi­tol

Muscat Daily - - BUSINESS -

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.

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