State-owned Kuwait Petroleum Corporation (KPC) is looking to borrow KD16bn ($52.7bn) to finance its capital spending programme over the next five years, the local Al-Rai newspaper reports.

The borrowing plans are part of KPC’s plan to boost the Gulf state’s oil production capacity to 4.75 million barrels a day (b/d) by 2040, up from 3.2 million b/d currently, as well as expanding its downstream refining industry, Al-Rai said, citing informed sources. KPC could not be reached for a comment.

Along with other major regional producers, Kuwait is aggressively investing in downstream refining capacity at home and abroad. Under its newly approved 2040 strategy, KPC wants to significantly build out its downstream sector, with a planned capacity of 2 million b/d by 2035 from 936,000 b/d currently.

The budget includes projects both inside and outside Kuwait, the report added.

KPC CEO Nizar al-Adsani said in February that Kuwait wants to secure 1.3 million b/d of downstream capacity outside of the state for its oil by 2035. KPC currently has stakes in two overseas refineries, the 200,000 b/d Nghi Son refinery in Vietnam, and the 268,000 b/d Milazzo refinery in Sicily.

It will have additional capacity by 2021, with the completion of the 230,000 b/d Duqm joint venture refinery in Oman. Kuwait Petroleum International, a KPC subsidiary revealed earlier this year that it hopes to sign a deal to buy a stake in an as yet unidentified Indian refinery.

The oil ministry has estimated it will need around $508 billion to reach the 2040 target, with $114bn planned for the next five years.