In June 1961 petroleum products distribution outlets in the local market were passed to KNPC, from Kuwait Oil Company Ltd. Since then, KNPC embarked on increasing its distribution facilities in order to meet growing local demand for fuel in light of continuous urban expansion and the rising standard of living in the country which is accompanied by steady increase of vehicles population.
Through its local marketing arm, KNPC in steady growth built new filling stations, supported by two main depots for the storage of various petroleum products needed to meet the local market requirements. One main fuel depot was built at Sabhan and is being supplied with petroleum products from the company’s refineries by means of pipelines. A second petroleum product depot was built in early 2000 at Ahmadi township.
The number of filling stations through Kuwait increased and reached 119 stations by 2007.
Naturally, the main products KNPC provided to the local market are unleaded Super Premium gasoline and Premium gasoline, gas oil, and kerosene. In addition to fuel supplies, most stations provide other services such as oil changing, and distilled water for car batteries.
When KNPC took over the management of the fuel stations in 1961, there were only a dozen of petrol stations, most of which were small and consisted of one or two islands. Today there are 119 stations spread out in all parts of Kuwait, including the highways leading to the country’s Northern and Southern borders.
In the mid-1980’s KNPC introduced the self-services system at the filling stations. Two thirds of the company filling stations were self-service operated. To cope with increased demand, these stations were equipped with quick, responding and easily operated pumps. However after the privatization of 80 filling stations ,this self service system was discontinued and replaced by full service system in all KNPC manned petrol stations.
Automatic Car Wash Stations
KNPC introduced this services in its Local Marketing facilities in the late 1970’s, and now operates 4 automatic car wash stations at Mansouria, Qurtuba, Bayan and Abu-Hlaifa. Two of them had been turned on to the private sector.
These facilities provide full cleaning services, from engine oil change to steam-washing of the car engines and a multistage cleaning process that uses modern technology. Indeed, the services provided at these stations are at the same level in similar facilities in Europe and the USA.
Kuwait Oil
KNPC started marketing lube oils as early as February 1961 under the brand name of Kuwait Oil. In 1978 KNPC inaugurated its own lube oil blending plant in Shuaiba. In the early stages, the plant produced car and heavy equipment engine oil, A separate turbine oil production unit was then added in 1983 with an annual capacity of 5,000 metric tons. The design capacity of the plant is 28,000 tons per year. The plant’s oil products continued to be marketed locally under the brand name “Kuwait Oil” through the KNPC filling stations.
In November 2004 KNPC launched a privatization program of Local Marketing facilities. The property of the lube oil blending plant was completely transferred to a local private company. Thus the privatization of lube oil business in the company has been completed. This business which the company started 48 years ago came to a total end as the company walked out of it.
Products Depots
The Local Marketing Department, is running two depots to supply fuel to the distribution network. The first one is in Sabhan. It is supplied with petroleum products ie, gasolines (different grades), kerosene and diesel form Mina Al-Ahmadi and Shuaiba refineries by pipeline.
The other depot is in Al-Ahmadi, was commissioned in 2000.
Privatization of Local Marketing facilities
KNPC set up a special team to fulfill plans and draft procedures for the privatization process endorsed by KPC and KNPC. The process began with Local Marketing facilitates.
Efforts focused on privatization of the lube oil business and the petrol stations. In November 2004 the contract for the sale of the company Lube Oil Blending Plant in Shuaiba was signed with the winners of a public bid. This first step of privatization was soon followed by the next measure, namely turning the ownership of the company filling stations to the private sector. In May 2005 the first batch of filling stations was turned on to the “Oula” Company, a private shareholding company included 40 filling stations. Plans had also gotten underway to transfer two other groups, each consists of 40 stations to two newly established private companies before the end of the year 2006. The first batch of 40 filling stations was acquired by “Al-Sour” company in early 2006. In this sense KNPC still owns 39 filling stations only.
