Kuwait City, November 18, 2025 – Kuwait Petroleum Corporation (KPC), the state-owned oil firm, announced on Tuesday that it has signed a $4.89 billion (1.5 billion Kuwaiti dinars) syndicated loan agreement with local banks. Led by the National Bank of Kuwait (NBK) and Kuwait Finance House (KFH), this deal represents the largest-ever syndicated loan denominated in Kuwaiti dinars, KPC confirmed.

The loan is divided into two main tranches: a conventional portion of 825 million dinars and an Islamic tranche of 675 million dinars. The agreement brings together a consortium of leading Kuwaiti banks to support KPC’s ambitious growth strategy.

KPC’s Ambitious Oil Production Goals

KPC is actively pursuing a long-term plan to increase oil output to 4 million barrels per day by 2035. Kuwait produced 2.55 million barrels per day in October 2025, according to OPEC’s latest monthly oil market report. The newly secured funds will help finance KPC’s production expansion and diversify its funding sources, according to KPC CEO Sheikh Nawaf Saud Al-Sabah.

“The loan is a key part of our strategy to secure sustainable financing while advancing our long-term oil production and infrastructure goals,” Sheikh Nawaf said in a company statement.

Structure of the Syndicated Loan

Under the conventional tranche, NBK will provide an initial 330 million dinars with an option to extend another 165 million dinars. Other contributors to this portion include Al Ahli Bank of Kuwait (ABKK), Burgan Bank, Commercial Bank of Kuwait, and Gulf Bank.

The Islamic tranche, structured in compliance with Sharia law, will see KFH provide an initial 270 million dinars with the option for an additional 135 million dinars. Other banks participating in the Islamic portion include Boubyan Bank, Kuwait International Bank, and Warba Bank.

Strategic Financing Initiatives

Beyond this landmark loan, KPC is exploring additional funding avenues, including a leaseback of its crude oil pipelines. This approach, already utilized by several neighboring oil producers, is expected to raise billions of dollars to support infrastructure and production expansion.

By combining conventional and Islamic financing, KPC demonstrates its commitment to innovative funding solutions while balancing regulatory and operational requirements in the Kuwaiti oil sector.

Impact on the Kuwait Oil Market

This syndicated loan solidifies KPC’s financial position as it aims to boost production capacity and strengthen Kuwait’s presence in the global energy market. Analysts note that the deal highlights growing investor confidence in the stability and long-term prospects of Kuwait’s oil sector.