Kuwait has pre-qualified 13 local banks bidding for a contract to provide consultancy services for project finance in the oil sector, a local newspaper reported on Monday.
The Kuwait Petroleum Corporation (KPC), which manages the OPEC member’s hydrocarbon industry, is seeking advisory banks to provide consultancy services to its affiliated companies seeking loans to fund future hydrocarbon projects, the Arabic language daily Alanba said, citing KPC documents.
KPC invited bids from banks after the cabinet approved its request to borrow at a maximum 16 billion Kuwaiti dinars ($52.8 billion) to fund hydrocarbon projects in the next 5 years, the paper said.
“KPC has recently decided to reduce the borrowing ceiling to 12 billion dinars ($39.6 billion) following its decision to cut spending due to the spread of Coronavirus...the sum accounts for nearly 68 percent of project finance needs in the next five years,” it said.
The bulk of borrowing during that period will be used to fund projects related to oil and gas production and exploration, the paper added.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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