Kuwait Petroleum Secures $979M Loan and Plans Multi-Billion Dollar Deal

Shaikh Nawaf S. Al-Sabah, KPC Deputy Chairman & CEO

The Kuwait Petroleum Corporation (KPC) has secured a KD 300 million (~USD 979 million) syndicated loan, fully backed by traditional Kuwaiti banks, to support its operational and capital expenditure needs. The medium-term loan is part of KPC's broader financial strategy, as the corporation explores a larger Islamic financing deal worth close to KD 1 billion (~USD 3.2 billion). Discussions with Islamic banks are underway to secure a mix of Kuwaiti dinar and US dollar-denominated loans aimed at strengthening KPC's working capital.

KPC has requested Islamic banks to detail their potential contributions and terms for the proposed medium-term loans. This initiative aligns with KPC's five-year plan to optimize funding for reduced capital expenditure, which totals KD 20.2 billion through 2025. A significant portion, KD 13.3 billion, is allocated to exploration and production in Kuwait. The corporation plans to raise approximately KD 6 billion through a mix of local and international financing channels, including commercial and Islamic loans, as well as export credit facilities.

By March 2024, KPC and its subsidiaries reduced their total long-term loans to KD 2.93 billion, reflecting a strategic adjustment to evolving financial and oil market dynamics.

Source: Arab Times Kuwait