Kuwait Petroleum Corporation (KPC) has agreed to procure a syndicated loan of Kd1.5bn ($4.89bn) to support its strategy to boost oil output. 

The syndicated loan, denominated in Kuwaiti dinars, will comprise conventional and Islamic tranches and will help finance the company’s expansion plans, reported Reuters. 

It will be split into a conventional portion of Kd825m and an Islamic tranche of Kd675m. 

The National Bank of Kuwait will initially extend Kd330m in funding, with the possibility of an additional Kd165m under the conventional tranche. This portion of the financing also includes contributions from Al Ahli Bank of Kuwait, Burgan Bank, Commercial Bank of Kuwait and Gulf Bank. 

Kuwait Finance House will provide an initial Kd270m under the Islamic tranche, with an option for a further Kd135m. Other contributors to this tranche include Boubyan Bank, Kuwait International Bank and Warba Bank. 

The loan is part of the company’s effort to diversify funding sources, according to a statement by KPC CEO Sheikh Nawaf Saud Al-Sabah. 

In a separate development, Indian refiner Reliance has bought one million barrels (mbbl) of heavy crude from KPC through a tender, Reuters reported, citing trade sources. 

Last week, KPC announced a tender to sell crude oil that the Al-Zour refinery cannot process due to unexpected maintenance following a recent fire. 

Reliance will receive cargoes, with 500,000 barrels (bbl) of Kuwait Heavy Crude for loading on 6–7 December and another 500,000bbl of Eocene crude for loading on 8–9 December, the report said. 

In November last year, KPC announced a $33bn investment strategy up to 2029 to enhance its oil production capacity.