Project Example 34

Project Example – Privatization

Assignment Privatization of local marketing operations of KNPC (fuel stations and oil blending plant).
Client Name Privatization Committee led by Kuwait Investment Authority with Kuwait Petroleum Company.
Client’s Activities Governmental – Public Sector.
Assignment Date & Duration 2002, 15 months
Main Area of Focus
  • Review of old studies and data gathering
  • Prepare RFPS and qualification criteria to assign specialized third party consultants
  • Select sub-contractors
  • Develop privatization strategy that included:
    – Pricing strategy (gross margin)
    – National labor force
    – Number of companies
    – Ownership structure of these companies
    – Basis of allocation of the fuel stations to these companies
    – Regulatory supervision requirements upon privatization
    – Valuation of companies
Services Provided
  • Held role of lead advisor to the committee for fuel stations and oil blending plant privatization.
  • Valued operations
  • Set-up an implementable privatization process
  • Presented findings to Privatization Committee and Higher Oil Council
Outcome The fuel stations and oil blending plant were subsequently privatized in line with AlShall’s recommendations.