Kuwait National Petroleum Company
(KNPC), through the establishment of the company
in 1960, was the first national company
that has its Hydrocarbon resources exploited as well as managed by foreign
companies. The vision of the Company was stimulating development and giving an exemplary
experience in how national resources should be
handled. KNPC, in the perspective of the company, has been a model for an indigenous potential to
embrace exploitation and management of the country's oil resources that started
to develop into a massive income source that is capable of sustaining welfare
of the society and its overall development financing (KNPC, 2019).
The State of Kuwait, in 1975,
acquired KNPC’s full ownership and the operations were integrated relying upon
oil refinery of the company in Shuaiba along with the petroleum products’
marketing from Al-Ahmadi Refinery, in international as well as local markets., KPC
(Kuwait Petroleum Corporation) was established in 1980 as the asset was owned by the state of Kuwait along
with all other oil companies in the country, including KNPC. KNPC, currently, has
two state-of-the-art Refineries known as Mina Al-Ahmadi Refinery (MAA) and Mina
Abdullah Refinery (MAB). In March 2017, the Shuaiba Refinery was closed after the kick-off of the CFP (Clean
Fuels Project). 736,000 bpd crude oil is
a total production capacity of both Refineries along with 2.5 billion scfpd gas processing capacity (KNPC, 2019).
Advanced refining technologies
are being hosted by MAA and MAB, following the two Refineries’ revamping in the
1980s. The most important units at MAB Refinery are four Hydrogen production
units, two CDUs, a Vacuum Distillation
unit, two ARD units, a Hydrocracking unit, and two delayed Coker units. Now, four
Trains of ARDS units, an FCCU and a VGO Hydrocracker are being hosted by the MAA Refinery, besides a
host of Hydrogen Recovery units and Hydrogen production, Sulphur recovery
units, Distillate Hydrotreaters, and consolidated Sulphur granulation. KNPC, on
a domestic scene, is responsible for all petroleum products’ sale and
distribution in Kuwait’s local market. KNPC
and KPC put the trend into effect towards privatization and initiated transferring
Local Marketing assets in 2004, such as the petrol stations and the lube oil plant,
to private companies. All over Kuwait 43,
filling stations are owned by KNPC, and a
5-year plan is already underway to build more 100 stations to respond to the growing gasoline, and demand of other fuels (KNPC, 2019).
Currently, several major projects
are being carried out by KNPC amid to expand the refining capacity of the company and improve conversion
capabilities. The Company, in the meantime,
directed consideration to the human resources by the policy of steady growth implementation of national manpower and providing highly skilled and
qualified human resources its sites. The percentage of Kuwait people, up to
March 2018, in the total manpower was
approximately 87.11% of the labor force of KNPC totaling 6,152 Employees (KNPC, 2019).
The reason for choosing this
company for the project is that it is one
of the top companies in Kuwait rich in oil resources while focusing on human development and resources. The market
share of KNPC in Kuwait is among the highest,
so it seemed to be the best suitable company for this project.
SWOT Analysis of Kuwait National Petroleum Company (KNPC),
The SWOT Analysis of KNPC is given as (Pahl & Richter, 2009):
External
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Internal
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Opportunities
KNPC(Kuwait National Petroleum Company) had a huge amount of opportunities for development.
Rooms are always available for launching new services and products.
The agreements of KNPC(Kuwait National
Petroleum Company)’s trade are possible with other countries. In the market,
there is a gradual change and if
properly challenged then it’s a great opportunity.
|
Strengths
The KNPC(Kuwait National Petroleum Company) growth rate is much high. Entry of market
has minimum limitations for a handling company such as KNPC(Kuwait National Petroleum Company). Industry
offers the trends of the future. It is easier for KNPC(Kuwait National Petroleum Company) to approach similar
industries. The industry has shown a solid diversification. After the number of successful years, In the world
of oil resources, KNPC(Kuwait National Petroleum Company) is the most
popular and attention-grabbing name. Services of KNPC offer stability to the
economy through spending in diversified sectors of Kuwait, For example. Sector of oil.
|
Threats
By the government, KNPC(Kuwait National
Petroleum Company) tackles a huge amount of protocols, and the company was also
threatened by entrants of the new markets. In the UK or US, rising business affect
the economic region of the MENA and GCC. KNPC(Kuwait
National Petroleum Company) operations can be factored by the global economy
and political scenario. Conditions of the unfavorable
market can be in danger like growing competition.
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Weaknesses
R&D (Research
and Development) is a primary tool for the development of strategy and in
R&D a huge amount of investment has to make by the company. The group activity
exposes the KNPC’s liquidity, credit, and several types of risks of finance.
In the business, there are huge levels of risks in the form of loans and borrowings
from the bank.
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References of SWOT Analysis of
Kuwait National Petroleum Company (KNPC),
KNPC. (2019). WHO WE ARE. Retrieved from
https://www.knpc.com/en/about-us/who-we-are
Pahl,
N., & Richter, A. (2009). Swot Analysis - Idea, Methodology and a Practical
Approach. GRIN Verlag.