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OPEC member Kuwait has been locked in negotiations with a number of foreign banks to obtain loans to fund oil projects, a local newspaper reported on Sunday.
The state-owned Kuwait Petroleum Corporation (KPC), which manages the Gulf country’s hydrocarbon sector, is leading the talks for the loans which could include billions of dollars, the Arabic language daily Alanba said.
It quoted KPC sources as saying the negotiations involve only foreign banks as there are no plans to borrow from local banks at present.
“Negotiations are underway to borrow billions of dollars from foreign banking institutions to fund some major oil projects in the country,” one source said without identifying the banks involved in the talks.
In September, Alanba quoted officials as saying Kuwait has pre-qualified 13 banks for a contract to provide consultancy services for project finance in the oil sector.
KPC invited bids from several banks after the cabinet approved its request to borrow a maximum 16 billion Kuwaiti dinars ($52.8 billion) to fund hydrocarbon projects in the next five years, the paper said.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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