KPC denies plan to liquidate assets to fund K-Dow deal

The Kuwait Petroleum Corporation (KPC) said it had no plan to liquidate any investment assets in order to finance the K-Dow deal.

The Petrochemical Industries Company (PIC), an affiliate of the KPC, and the US Dow Chemical have recently clinched a multibillion US dollar deal for establishing a joint venture named K-Dow.
The KPC has adequate money to fund the K-Dow deal, said Ali al-Hajri, managing director of the KPC for financial and administrative affairs.

The KPC has considered all available finance options and plans to fund the PIC’s USD 7.5-billion quota in the joint venture with a view to finding the most efficient, lucrative and lowest-cost option, he said.

It has decided to provide USD 6 billion out of its own available resources, and the remaining USD 1.5 billion out of monetary distribution revenues, he added.

Earlier on Wednesday, the PIC announced insistence on going ahead with the USD-15-billion joint venture with the US Dow-Chemical.

The K-Dow is expected to start operation early January once the new company board is formed; the board chairman will be Kuwaiti while his deputy will be from the US company.

(Zawya & Kana)


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