This law establishes a single institution that owns all companies operating in the petroleum industry, from exploration, drilling and production of oil and gas to transportation, refining, marketing and production of products derived from petroleum. The objectives of this corporation are the marketing of crude oil and gas, refined petroleum products, liquefied gas and petrochemical products belonging to the state, in accordance with the financial principles proposed by the Minister of Oil and approved by the Supreme Petroleum Council.
Thus, a public corporation of economic nature called Kuwait Petroleum Corporation (KPC) shall be established, have an independent legal personality, and be supervised by the Ministry of Oil. In order to achieve its objectives, the corporation has the right to take all necessary actions and, in particular, establish joint companies, participate in instituted companies with other legal entities, acquire existing companies and reorganise them, and borrow from the government or its financial institutions.
This law indicates that this corporation shall have the state's shares in the capital of the following companies: the Kuwait National Petroleum Company; the Kuwait Oil Company; the Petrochemical Industry Company; and the Kuwait Oil Tanker Company.
Net profits from this company shall be distributed as follows: 10% to be deducted to form a compulsory reserve until this reserve reaches half of the capital of the corporation; 10% to be deducted to form a general reserve, and this percentage may be amended by a decision of the Supreme Petroleum Council; the remaining profits shall be transferred to the state treasury.
The Supreme Petroleum Council shall approve the general policy of the corporation, organise tenders and practices of the institution, and appoint one or more auditors from statutory accountants to supervise KPC's accounts.