Kuwait Energy Signs US$100 million Financing Facility with Vitol

28 - December - 2016

Kuwait City, Kuwait – 22 December 2016: Kuwait Energy plc (“Kuwait Energy”), signed a forward sale agreement with Vitol on Tuesday 13 December 2016. The agreement provides a financing facility for up to US$100 million.

Kuwait Energy has received the first drawdown of US$40 million on 22 December 2016. The facility will be repaid to Vitol via Kuwait Energy’s Iraqi crude entitlement.

This agreement will enable Kuwait Energy to continue and expedite its early production efforts in Block 9, Iraq; bringing more wells on stream, increasing production and enhancing overall value. US$80 million of the proceeds will be spent on Block 9 development and the remaining US$20 million to be spent on Egyptian assets.  

Sara Akbar, CEO of Kuwait Energy said:

“We are very pleased to announce this agreement with Vitol which will allow us to continue our growth in Iraq and enhance our production in Egypt. This agreement provides the Company with a long-term buyer for our Iraqi crude while ensuring the availability of capital to continue the development of Block 9. Despite the difficult market conditions, Kuwait Energy was able to mitigate the risks throughout 2016 and protect its cash position while growing the business focusing on optimal value generation for our shareholders.”

About Kuwait Energy:

Kuwait Energy is an independent oil and gas company actively engaged in the exploration, appraisal, development and production of hydrocarbons.

Kuwait Energy’s MENA portfolio consists of 10 oil and gas assets across Egypt, Iraq, Yemen and Oman of which it operates 7 assets.

As at 31 December 2015, Kuwait Energy’s 2P working interest reserves are 818 mmboe and YTD October 2016 average daily working interest production was 24,088 boepd.

The Company its registered office in Jersey, its head office in Bahrain, its regional operational hub in Kuwait and area offices in Basra, Baghdad, Cairo and Sana’a.

Kuwait Energy is currently assessing a range of strategic options, including a potential IPO, subject to market conditions.

For Further information, please visit the Kuwait Energy website:www.kuwaitenergy.co

For contact:

Sager Albenali – Corporate Communications Lead

Tel: +965 2576 7713

E-mail: sager.albenali@kec.com.kw

Back to News