Kuwait has approved the merger of Kuwait Integrated Petroleum Industries Company (KIPIC) into Kuwait National Petroleum Company (KNPC), according to a decision by the Supreme Petroleum Council published in Kuwait Alyoum, the country’s official gazette.

Under the decision, KNPC will absorb KIPIC and assume all of the company’s rights, obligations and assets, the Kuwait News Agency (KUNA) reported.

The merger plan includes compensation for minority shareholders in KIPIC, excluding Kuwait Petroleum Corporation (KPC), based on an approved valuation of the company’s assets and the corresponding financial entitlements.

As part of the transaction, KNPC’s capital will be increased by an amount equivalent to the assessed value of KIPIC’s assets, raising its capital to approximately KD2.632 billion.

The decision also provides for amendments to KNPC’s Articles of Association to reflect the merger and align with the company’s objectives once all legal and regulatory procedures have been completed.

The move is aimed at strengthening integration among KPC subsidiaries and enhancing efficiency across Kuwait’s petroleum sector through the optimal use of resources and capabilities.

Relevant authorities are expected to complete the remaining legal and administrative requirements for the merger, including signing related agreements and updating official records and regulations.