The government of Kuwait announced plans to sell stakes in state oil producer Kuwait Petroleum Corp’s business units, among them Kuwait Oil Tanker Company (KOTC), according to Bloomberg.
Over the next four years, the government will sell off stakes of 20-30% in the businesses by means of initial public offerings (IPO), which will take place “definitely soon”, Anas Al-Saleh, Kuwait’s acting oil minister, told the news service.
The privatisation plan aims to help Kuwait diversify its economy away from oil, while tapping global capital markets for cash to improve efficiency in the industry.
The government will keep majority control of the energy companies once their shares have been listed, Al-Saleh said.
Stakes in Kuwait Foreign Petroleum Exploration Co and Petrochemical Industries Co will also be sold off.
KOTC operates a live fleet of 25 crude and product tankers, including 12 VLCCs, plus four 80,000-cbm LPG carriers. VesselsValue.com estimates the fleet’s current market value at $1.14bn.