KUWAIT: Kuwait Petroleum Corporation’s (KPC) executive administration resumed meeting with various oil companies to acquaint its employees about initiatives that would help cut expenses as well as stop the uncontrolled growth of payroll in the coming five years. In this regard, wellinformed official oil sources said that KPC’s initiatives aim at saving KD 190 million yearly, adding that oil sector payroll costs would jump from KD 1.5 billion to KD 2.3 billon within five years.
The sources explained that KPC met managers and heads of teams and officials at Kuwait National Petroleum Company (KNPC), Kuwait Oil Company (KOC) and the Petrochemical Industry Company (PIC), and discussed suspending bonuses while in service and on termination, in addition to reducing flight tickets for senior officials and regulating daily travel allowances to KD 220 a day for senior officials travelling worldwide and KD 180 a day for other officials travelling to any country.
The sources also explained that the austerity measures also include rationalizing overseas training courses, downgrading flight tickets and reducing daily allowances as per the KPC’s board decision issued on Feb 1, 2016.
The measures also include suspending the spring camp and paying parts of club and spa subscription fees. As far as expat employees are concerned, the source explained that KPC decided turning expat administrative staffs to work through contractors in order to reduce the cost of salaries and incentives they get.
The sources added that the measures would also include comprehensive reconsideration of the incentives and privileges non-Kuwaiti staff receive, such as tuition fees, rent allowance, flight tickets and medical services. KPC CEO Nizar Al-Adasani said that KPC’s financial reforms aim at allowing the private sector and citizens to play larger roles in bidding for and co-owning oil service activities. He added that a special schedule was being prepared to launch and privatize 42 petrol stations. He also expected that the initiatives offered by KPC would help maintain payroll costs at KD 1.5 billion. — Al-Anbaa