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Kuwait - Part 5 - The Decision Makers.

APS Review Oil Market Trends

| June 29, 2009 | COPYRIGHT 2009 Input Solutions. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Decision making for the petroleum sector in Kuwait involves a few members of the ruling al-Sabah family and some non-Sabah associates. In the government they are represented by Shaikh Ahmad Abdullah al-Ahmad al-Sabah in his capacity as oil minister and chairman of state-owned Kuwait Petroleum Corp. (KPC).

Final say in this sector rests in the National Assembly (parliament). But the ruler of Kuwait, Emir Shaikh Sabah al-Ahmad al-Jaber al-Sabah, has the power to dissolve parliament as he has done three times since he took the throne in early 2006; in that case we would rule by decree.

Officially, the Supreme Petroleum Council (SPC) is the highest decision-making body for the sector. But SPC's decisions have to be approved by the National Assembly, after endorsement and submission by the Council of Ministers. In practice power lies only in the person of the Emir (see gmt26KwtWhoJun29-09).

The SPC was established in 1974. The SPC law was amended on Jan. 18, 1987, with the stipulation that it should be headed by the prime minister (PM). Now it is headed by PM Shaikh Nasser al-Muhammad al-Sabah. Under Shaikh Nasser on this council are 16 members holding office for a three-year term. They include nine former deputy oil ministers and businessmen. There are seven ex-officio members including the ministers of oil, finance, commerce, and electricity & water, and the governor of the Central Bank. But members of the new parliament, elected on May 16, 2009, want the line-up to be changed (see below).

The SPC should meet at least four ...

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