Wedoany.com Report-Nov. 19, Kuwait Petroleum Corporation (KPC) has secured a syndicated loan worth Kd1.5bn ($4.89bn) to support its strategy of increasing oil output. The loan, denominated in Kuwaiti dinars, consists of both conventional and Islamic tranches, with the aim of financing the company's expansion plans. This move aligns with KPC's broader goals of enhancing its oil production capabilities.

KPC is selling 1mmbl of crude oil to Indian refiner Reliance through a tender.

The loan will be divided into two portions: Kd825m in conventional financing and Kd675m in an Islamic tranche. The National Bank of Kuwait will provide an initial Kd330m for the conventional portion, with the potential for an additional Kd165m. Other contributors to the conventional tranche include Al Ahli Bank of Kuwait, Burgan Bank, Commercial Bank of Kuwait, and Gulf Bank. For the Islamic tranche, Kuwait Finance House will initially contribute Kd270m, with an option for a further Kd135m. Additional banks involved in the Islamic financing include Boubyan Bank, Kuwait International Bank, and Warba Bank.

This loan is part of KPC’s broader efforts to diversify its sources of funding, as explained by CEO Sheikh Nawaf Saud Al-Sabah. The financing will help KPC fund its ongoing expansion projects, which include plans to boost oil production and infrastructure development.

In a separate development, Indian refiner Reliance Industries has secured a tender to purchase one million barrels of heavy crude from KPC. The transaction follows a recent tender launched by KPC to sell crude oil that could not be processed by the Al-Zour refinery due to unexpected maintenance after a recent fire. According to trade sources, Reliance will receive two cargoes, each consisting of 500,000 barrels of crude. The first batch, 500,000 barrels of Kuwait Heavy Crude, is set to load between 6–7 December, followed by another 500,000 barrels of Eocene crude for loading on 8–9 December.

In November 2024, KPC announced a significant $33bn investment strategy aimed at increasing its oil production capacity by 2029. This strategic investment is expected to help Kuwait maintain its position as a major player in the global oil market.