Kuwait Petroleum cancels contracts, slashes expat jobs to cut costs
Kuwait Petroleum Corporation (KPC), the state oil company of Kuwait, has cancelled a large number of tenders and contracts this year amid the slump in oil demand due to the coronavirus pandemic, Kuwait-based newspaper Arab Times reported.
The coronavirus has caused an unprecedented decline in demand for petroleum products. The Organization of Petroleum Exporting Countries (OPEC) and allies, including Russia, have implemented enormous production cuts in order to stabilize the oil market; as producers worldwide struggle with a dramatic decline in prices.
Arab Times reported that the decision to cut the tenders and contracts will result in the end of service for expats under both permanent and private contracts.
Sources told the newspaper that the Kuwait Oil Company, a subsidiary of KPC, would be cancelling its Ahmadi City buildings project, and cancelling the contract for the supply of connections to the wells.
The Dabdada solar energy project was also recently cancelled, the Times said. The project is worth 551 million dinars ($1.79 billion).
The Petrochemical Industries Company, another KPC subsidiary, would also be cancelling contracts for its annual meeting of leaders of the oil sector, along with a variety of other contracts, the Times said.
