Kuwait:- Kuwait Petroleum Corp is considering selling bonds to help pay for a planned investment of 100bn over the next five years to boost oil output from Opec’s fourth-biggest producer, according to the company’s chief executive officer.
“The world market will need around 5mn to 6mn bpd of new crude annually,” al-Adsani said. “This shows the importance of continuity in investments in upstream globally for the sake of stable market supply and to avoid volatility and spikes in oil prices.” Kuwait will study othe means of financing such as bonds, sukuk, and project bonds, he said. “This will open up the possibility for KPC to be rated by international credit agencies.”
Kuwait, with fellow Arab producers in the Gulf including Saudi Arabia, led the Organisation of Petroleum Exporting Countries to abandon output limits on December 4 amid efforts to squeeze higher-cost producers such as Russia and US shale drillers from the market. The small nation of 3.7mn people holds 101.5bn barrels in crude reserves. Kuwait’s production rose by 50,000 bpd to 2.9mn bpd in December, according to data compiled by Bloomberg.
“KPC will continue in its role in the market as set in its strategy to 2030 which requires launching many mega-projects and investments in refining and petrochemicals outside of Kuwait, beside raising the daily crude production capacity,” al-Adsani said.