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. |
