RIYADH: The Arab Energy Fund has led and closed a $346 million reserve-based financing facility for Kuwait Energy Basra Limited, the operator of Block 9 in southern Iraq, in a move that will support the next phase of expansion and development at the field,
The facility will also enable KEBL — a wholly owned subsidiary of Hong Kong-listed United Energy Group Limited — to continue drilling activities, optimize infrastructure, and enhance production capacity at Block 9, contributing to increased output and supporting Iraq’s efforts to strengthen its energy sector.
The facility’s closing comes at a pivotal time for Iraq’s broader energy strategy as the country seeks to expand oil production capacity and navigate operational uncertainties at major fields.
Nicolas Thevenot, chief banking officer of the Arab Energy Fund, said: “This successful close reflects the Arab Energy Fund’s ability to structure and lead sophisticated financing solutions grounded in real operational needs, as well as our deep understanding of upstream project fundamentals.”
He added: “We are proud to partner with UEG, KFH, and Trafigura to support the continued expansion of Block 9 and contribute to strengthening Iraq’s energy ecosystem.”
The Arab Energy Fund was appointed initial mandated lead arranger and structuring bank in 2024 and managed the transaction through financial close.
Kuwait Finance House B.S.C. and commodity trader Trafigura Pte. Ltd. joined during syndication as mandated lead arrangers.
The Faihaa Field is regarded as a strategic upstream asset within Iraq’s long-term production outlook and a contributor to the country’s energy security objectives.
The Arab Energy Fund said it remains committed to advancing the sustainable development of national energy sectors across its member states and the wider Middle East and North Africa region.
Iraq’s oil ministry has outlined plans to lift crude oil production capacity to more than 6 million barrels per day by 2029, targeting several upstream expansion projects across southern basins to bolster output and fiscal revenues.
Concurrently, geopolitical and operational developments have affected key assets such as the West Qurna-2 field, one of Iraq’s largest. Recent government action to assume control of operations following international sanctions on the previous operator underscores the challenges facing foreign investment and production continuity in the sector.
