Kuwait Petroleum Corporation (KPC) intends reassessing plans to spend approximately $500 billion in capital investment, Bloomberg reported.

KPC said it might decide to combine its eight business subsidiaries into four during 2019 to restructure the company, according to a person familiar with the matter, Bloomberg said.

“Lower oil prices, Kuwait’s reduced output under a deal by OPEC to pump less crude, and a re-evaluation of how best to spend the money have prompted the review, the person said, asking not to be identified as the matter isn’t public. The company announced plans last year to spend about $500 billion on capital projects until 2040,” Bloomberg added.

KPC may consider merging Kuwait Foreign Petroleum Co., Kuwait Oil Tanker Co., Kuwait Gulf Oil Co., and Kuwait Integrated Petroleum Industries Co. into larger units as part of the corporation’s long-term strategy, subject to government approval, the person said.

“As part of its reassessment of planned spending, KPC is reviewing investment in so-called heavy oil, which is costly to produce, the person said. It’s targeting production of 85,000 barrels a day of heavy oil by 2020 or 2021 and is investing to develop reservoirs of the dense crude,” Bloomberg noted.

-Mubasher