KUWAIT, July 26 (KUNA) -- Kuwait Petroleum Corporation (KPC) is considering the formation of an offshoot commercial firm, which trades in petroleum products, an official said on Wednesday.
"The new company, if approved, "will not exercise any kind of speculations" on international petroleum stocks, Acting Managing Director for global marketing Imad Al-Abdulkareem said in a statement.
Instead, "the company will focus on maximizing the added value of KPC's hydrocarbons production and will add more flexibility to operations in the service of the corporation and its customers," he added.
KPC's commitment to the international pact, between OPEC and non-OPEC countries, to limit production has also led to a decrease in exports of Kuwaiti crude, he explained.
The US market was the most affected by this output reduction, prompting KPC to agree a decrease of its contractual obligations with US customers this year.
KPC usually coordinates amendments to its deals with customers, in the event of exceptional cases in the oil market, in a manner that is satisfactory to all sides, he revealed.
OPEC and other oil-producing countries, including major producer Russia, recently agreed to extend a deal to limit output by 1.8 million barrels a day for a further nine months.
The move aims to hasten the stability of global oil markets. (end)