KUWAIT: Kuwait’s sovereign fund is not considering exiting its investment in BP and believes the energy giant’s future is not threatened by the Gulf of Mexico oil spill, a newspaper reported on Sunday.
Quoting sources it did not identify by name, Al-Rai daily said the Kuwait Investment Authority (KIA) currently has no fears that would prompt it to sell its 1.75 percent stake in BP.
The British company faces a criminal probe and lawsuits over the spill caused by an April 20 rig explosion that killed 11 workers. US government scientists estimate that between 12,000 and 19,000 barrels of oil a day have been pouring into the Gulf of Mexico since then.
BP’s share price has been stripped of about one-third of its value since the crisis began.
The newspaper also said its sources confirmed KIA’s interest in investing in the initial public offering of Agricultural Bank of China. It said it could invest up to $1 billion in what is believed to be the world’s largest IPO.
A Chinese newspaper reported on May 31 that several Middle Eastern sovereign wealth funds, including the KIA, were holding talks with the bank about investing in it.
KIA, which manages the OPEC member’s foreign investments, has not started negotiations yet, pending information about share value, premium and the percentage of shares it would buy, according to the daily.
KIA officials could not be immediately reached for comment when contacted by Reuters.