The Export-Import Bank of Korea (Korea Eximbank) said on Monday that the South Korean bank had signed a memorandum of understanding with Kuwait Petroleum Corp to finance $5 billion for some of the state-run oil company’s projects in Kuwait.
Of the total $5 billion, some will finance the combined $6.7 billion three deals of KPC’s Clean Fuel Projects that South Korean builders had won, while the remainder will be used for upcoming contracts if South Korean firms win, according to the bank statement and its official.
The breakdown of the financing is not finalised yet. Commissioning for the Clean Fuel Project by Kuwait’s National Petroleum Company (KNPC) set to start in April 2018 is to upgrade and expand two of Kuwait’s largest refineries to focus on producing higher-value products for export, such as diesel and kerosene.
KNPC, owned by KPC, was awarded $11.5 billion worth of contracts in July to build the al-Zour oil refinery to a consortium including Daewoo Engineering and Construction, Hyundai Heavy Industries and SK Engineering and Construction.