MANAMA, Jan 7: Kuwait's Supreme Oil Council has recommended further study into the possible investment by state-owned Kuwait Petroleum Corporation into Pakistan's retail fuel market, Kuwaiti media reported on Wednesday.

Kuwait Petroleum is considering buying a controlling stake in Pakistan's biggest oil marketing company, Pakistan State Oil. Kuwait Petroleum executives met Pakistan privatization officials in October and declared that they saw a potential investment opportunity in PSO.

Kuwait's al-Qabas newspaper said that Pakistani government officials had informally offered Kuwait the opportunity to invest in the oil sector against a $250-million loan that Pakistan had taken from the state-controlled Kuwait Investment Authority.

The Pakistani government is selling a 51-per cent stake in PSO as part of its privatization programme, which includes the sale of state-run banks, power and telecom utilities.

Kuwait Petroleum is one of the key potential bidders for the PSO stake. The others include Pakistan's Fauji Foundation and Saudi Arabia's Midroc Holding.-Dow Jones Newswires