Kuwait Energy Says Signs $100M Financing Facility With Vitol

Reuters

DUBAI, Dec 28 (Reuters) - Kuwait Energy said on Wednesday it signed a forward sale agreement with Vitol providing it with a financing facility for up to $100 million.

The Kuwaiti oil and gas exploration and production company, with assets in Egypt, Iraq, Oman and Yemen, said it has received the first drawdown of $40 million on Dec. 22, and that Vitol will be repaid via Iraqi crude entitled to Kuwait Energy.

The agreement with Vitol will enable Kuwait Energy to continue with its production plans in Block 9 in Iraq by bringing more wells on stream and increasing output.

"$80 million of the proceeds will be spent on Block 9 development (in Iraq) and the remaining $20 million to be spent on Egyptian assets," the company said in a statement.

"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," said Sara Akbar, chief executive of Kuwait Energy in the statement.

(Reporting by Ahmed Hagagy; Writing by Rania El Gamal; Editing by Elaine Hardcastle)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Sr. Electronics Engineer
Expertise: Electrical Engineering|Engineering Manager
Location: Houston, TX
 
United States Midland: Account Rep, Bus Dev
Expertise: Business Development|Sales
Location: Midland, TX
 
United States Midland: Account Rep, Bus Dev
Expertise: Business Development|Sales
Location: Midland, TX
 
search for more jobs

Brent Crude Oil : $55.47/BBL 0.69%
Light Crude Oil : $52.48/BBL 0.30%
Natural Gas : $3.41/MMBtu 0.29%
Updated in last 24 hours