Kuwait Energy Seeks $100m for Egyptian Fields

Kuwait Energy Seeks $100m for Egyptian Fields

Kuwait Energy Oil and Gas Exploration Company is currently planning to finalize a reserve-based lending (RBL) loan facility of up to $100m by the end of 2016. The fund will be used to finance operations in Egypt’s Abu Sennan, Area A, Burg El Arab and East Ras Qattara fields , reported Gulf Business. The company source added that part of the loan proceeds would also be used to support the firm’s capital expenditures at its Block 9 oil asset in Iraq.

The company is likely to obtain the financing on a bilateral basis from the European Bank for Reconstruction and Development (EBRD. However, a source at the company added that other lenders were also being considered, reported Gulf News.

The Kuwaiti oil and gas exploration and production company has assets in Egypt, Iraq, Oman and Yemen.  According to Fitch, the company could potentially deplete its cash reserves before the end of 2016 should it not manage to raise the required debt financing, which Fitch estimated would total $150m divided between a prepayment facility of up to $100m million and an RBL facility of up to $50m.

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Sarah Samir 3516 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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