Kuwait Energy said on Dec. 28 it signed a forward sale agreement with Vitol providing it with a financing facility for up to $100 million. The agreement with Vitol will enable Kuwait Energy to continue with its production plans in Block 9 in Iraq by bringing more wells onstream and increasing output.
Kuwait Energy, with assets in Egypt, Iraq, Oman and Yemen, said it received the first drawdown of $40 million on Dec. 22, and that Vitol will be repaid via Iraqi crude entitled to Kuwait Energy.
"$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, CEO of Kuwait Energy, in the statement.
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