Japan to help Kuwait step up oil production

Japanese industry minister Koichi Hagiuda told Kuwait’s oil minister Muhammad Al-Faris at an online meeting on Thursday about the plan to help Kuwait step up crude oil production as Russia’s invasion of Ukraine has rocked the market.

In response, the Kuwaiti minister, who concurrently serves as deputy prime minister, suggested that Kuwait will have discussions with other oil-producing nations toward stabilizing the market.

In the online meeting, Hagiuda said he is concerned about high crude oil prices brought about by the Ukrainian crisis, stressing that he hopes that the syndicated loan will enable Kuwait to increase its crude oil output capacity.

Nippon Export and Investment Insurance, or NEXI, which the Japanese government wholly owns, will insure a syndicated loan to be extended to Kuwait Petroleum Corp.

According to the industry ministry, the syndicated loan is expected to reach 1 billion dollars, or some 120 billion yen. The loan will be decided soon by Western financial institutions as well as three Japanese megabanks–MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank.

After the meeting, the ministers signed a memorandum of understanding for cooperation between NEXI and Kuwait Petroleum in the fields of energy and decarbonization.