KEC gets $50m to develop assets

The International Finance Corporation (IFC), the World Bank’s private sector lender, will lend $50 million to Kuwait Energy to help the company develop its oil and natural gas assets in Egypt and Yemen.

IFC’s funds will support Kuwait Energy’s recent oil discoveries in Egypt and conduct more exploration in Yemen.

Kuwait Energy will increase the production of oil and gas so that the sector can continue to provide jobs, foreign exchange reserves and government revenues in both countries, a Reuters report said.

The IFC financing package is made up of a $35 million reserve based facility and a $15 million income participation facility, using a murabaha structure that is common in Islamic finance transactions.

Sara Akbar, Kuwait Energy’s boss and the only female top executive in the region’s oil and gas sector, said the IFC’s funds will help “at this early stage of our company’s growth.”

Independent explorer Kuwait Energy currently has operations across the Middle East, North Africa, Eastern Europe, and Pakistan.

The company has 19 exploration blocks in seven countries, 11 producing assets in six countries and operates 10 fields in four countries.

The IFC will also help Kuwait Energy prepare for a potential listing on an international stock exchange.

(Upstream Online)


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