 Shell opened a representative and trading office in Kuwait and the ‘Shell Company of Kuwait’ was born. The deal,agreed for 10 years, was extended up to 1974, when changes in the commercial environment meant that the agreement no longer made economic sense to either side. Shell and Kuwait continued their very strong oil trading relationship and after the Gulf War, when Kuwait recommenced exports, Shell was the first company to purchase crude oil from KPC (Kuwait Petroleum Corporation). In the early days following the War, Shell was the major lifter of Kuwait’s crude, at times purchasing as much as 30 percent of total production. As production increased and KPC diversified its customer base, Shell’s purchases reduced in size. Nonetheless Shell remains a substantial purchaser of Kuwait’s crude, lifting some 10 per cent of total exports and continuing to provide Kuwait with access to international markets through its network of refineries. In the late 1950s, Shell bid for an oil concession in Kuwait’s offshore, which was eventually won by the Arabian Oil Company, a Japanese consortium. However, Shell persevered, with the support of Kuwait’s leaders who were keen to see Shell bring its experience to the country to help train Kuwaitis. The result was that on 15th January, 1961, the Shell Group Managing Director, F. J. Stephens, signed with H. H. Sheikh Abdullah Al-Salem Al-Sabah an offshore concession agreement covering 1,500 square miles. A new company, Shell Petroleum Development Kuwait, was formed. In February of the same year, Shell commenced seismic surveys of the concession area and drilled three wells (Riqah, Hamuur and Zubaidi), which had to be abandoned as dry holes. However, Shell’s seismic work had identified a much more promising area for drilling in the southeast corner of the concession, but this area was complicated by border issues, still unresolved today.
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 In the mid-90s, Shell was invited by KOC to assist in confidential joint studies related to offshore exploration and to gas, a specific aim being to transfer Shell’s technology and expertise to Kuwaiti staff. Kuwait Shell Limited was established and an office was opened for the company in Kuwait City in 1999. Dr Ken Taylor was appointed as General Manager to develop the relationship between Shell and Kuwait. Two further areas of sustained partnership between Shell and Kuwait are aviation refuelling and lubricants supply. Shell has refuelled Kuwait Airways around theworld since the 1960s, whilst the 40-plus-year-old relationship between Shell and its Kuwaiti lubricants distributor, Al-Hafez Trading, must be one of Shell’s strongest partnerships in the Gulf. Currently, Al-Hafez Trading distributes a full range of industrial lubricants and greases, assists Shell Marine Products in supplying marine lubricants to vessels calling at Kuwait’s port, and distributes the popular Shell Super Plus range of high performance automotive engine oils. Shell also contributes to Kuwaiti society through its environmental and social activities. Sport and cultural events are supported, and Shell shares in the funding of archaeological excavations at Kuwait Bay. Shell has formed a partnership with Kuwait’s Environment Public Authority to promote environmental awareness and has completed a feasibility study to support young business entrepreneurs before launching Shell’s Intilaaqah training programme for young people. However, the company’s greatest contribution is through the products and technology that it offers within Kuwait. Today Shell is supplying chemical catalysts to KNPC (Kuwait National Petroleum Company) through its wholly-owned subsidiary Criterion Catalysts, and Shell Global Solutions is providing direct technical assistance to enhance the performance of Kuwait’s refineries. Shell stands ready to deepen its partnership with Kuwait through involvement in the development of the Northern Fields through Project Kuwait. Shell hopes to have the opportunity to bring to bear its worldwide and regional expertise, as Kuwait moves towards a greater involvement of International Oil Companies in its upstream operations.
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