Kuwait names firm to manage debt programme for oil projects

$11 billion loan to be shared equally by local and foreign banks

  
Image used for illustrative purpose. Oil and gas industry, Petrochemical plant area in morning with reflection in river

Image used for illustrative purpose. Oil and gas industry, Petrochemical plant area in morning with reflection in river

Getty Images/Busakorn Pongparnit

26 November 2019

A Kuwaiti company responsible for downstream oil investment has appointed British law firm Clifford Chance to advise on the $11 billion borrowings planned to fund hydrocarbon projects, a local newspaper has said.

The Kuwait Integrated Petroleum Industries Company (KIPIC), an affiliate of the state-owned Kuwait Petroleum Corporation (KPC) will get the lion's share of the loan which KPC will seek after it obtained government approval, the Arabic language daily Al-Rai said, quoting KIPIC sources.

KIPIC will pay around $6.79 million to Clifford Chance, one of the world's largest law firms, under a three-year contract for providing consultancy services for KPC's debt programme, the paper said.

"KPC is close to a decision to start borrowing nearly $11 billion to fund projects planned by its affiliated companies after it obtained cabinet approval this year to borrow up to $16 billion," the report said.

KPC will later appoint local and foreign advisers to arrange the loans, which will be shared equally by national and foreign banks, it added.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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