Kuwait is committed to its petroleum investment plans despite the prospect of low oil prices persisting, reported Arabian Business. Kuwait Petroleum Corporation (KPC) CEO, Nizar al-Adsani, said that the company was anticipating “an expenditure of $100b over the next five years, of which half is already committed to specific identified projects”. The projects include the Memorandum of Understanding (MoU) that KPC has signed with two Korean Credit Agencies, K-sure and KOEXIM, for a total of $11b to finance upstream, downstream, petrochemical, and transportation operations, Al-Adsani said.
According to KPC CEO, the company is also looking into other means of financing its investment plans through bonds, Islamic bonds (sukuk) as well as project bonds, given the current global oil price context. The prices will likely remain low in 2016 and may be traded for between $40 to $60 until 2020, said Kuwait’s representative in OPEC, Nawal al-Fuzaia, informed Nasdaq. Al-Fuzaia added that Iranian crude would most likely further depress prices in the near future, however, depending on when the crude “would come to the market, what would be the volumes and grades and where it would be marketed, ” wrote Trade Arabia.