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Oil and Gas Kuwait Government, Law and Regulation

Kuwait Public Sector Oil Contracts

Kuwait Petroleum Corporation (KPC) developed new local content rules for public sector oil contracts. The aim is to increase Kuwaiti private sector participation in KPC projects. 
By 2040, KPC is aiming to achieve the following goals: 

  • Leverage refining and petrochemical businesses to create downstream manufacturing opportunities to the private sector
  • Increase local private sector share in KPC spending by requiring a minimum of 30% of a project spending be designated for Kuwaiti suppliers.  

The Kuwait Petroleum Corporation and its subsidies aim to achieve 100% Kuwaitization of the “K” oil and gas companies. According to official data from fiscal year 2021, the total Kuwaiti workforce at the “K” oil and gas companies are about 87.7 percent or 21,400 employees.

The Kuwait Oil Company has ‘Kuwaitized’ approximately 3,949 jobs, bringing the total to 5,130 employees with companies which have contracts with the Kuwait Petroleum Corporation and its subsidiaries is about 5,130 employees, which is equivalent of the Kuwaitization percentage as per the clause in the vendors contracts. Normally, the state-owned company, Kuwait Oil Company (KOC), announces available job opportunities to work with vendors awarded projects in the oil sector.  It’s highly important for U.S. companies to understand the requirement and the process while bidding on a project to judge the associated cost. 

This trend will continue until Kuwait Petroleum Corporation and its subsidiaries reach 100% Kuwaitization of the workforce.  

Recommendations to U.S. companies 

U.S. companies doing business with the state-owned company for the first time are recommended to visit the following websites to learn about the prequalification process and how to do business with the oil sector: 

Kuwait Oil Company for upstream business opportunities:  KOC’s ebusiness portal 
Kuwait National Petroleum Company for downstream business opportunities: KNPC eSourcing Portal

U.S. companies that are seeking projects with the oil sector should pay attention to the local content requirements in the tender and line up their resources before signing a contract with a state-owned company to avoid underperforming and paying penalties. nTo learn more about local content rules or for support to find a local partner, please contact Senior Commercial Specialist Dina Alshawa at Dina.Al-Shawa@trade.gov

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