Kuwait Energy signs forward sale agreement with Vitol

Kuwait Energy plc has recently signed a forward sale agreement with Vitol. The agreement provides a financing facility for up to USD 100M. Kuwait Energy has received the first drawdown of USD 40M on 22 December 2016. The facility will be repaid to Vitol via Kuwait Energy’s Iraqi crude entitlement. This agreement will enable Kuwait Energy to continue and expedite its early production efforts in Block 9, Iraq; bringing more wells on stream, increasing production and enhancing overall value. USD 80M of the proceeds will be spent on Block 9 development and the remaining USD 20M to be spent on Egyptian assets.
Sara Akbar, CEO of Kuwait Energy said: “We are very pleased to announce this agreement with Vitol which will allow us to continue our growth in Iraq and enhance our production in Egypt. 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. Despite the difficult market conditions, Kuwait Energy was able to mitigate the risks throughout 2016 and protect its cash position while growing the business focusing on optimal value generation for our shareholders.”

Previous articleNEW YEAR GREETINGS
Next articleNTPC to take over Chhabra Power Station in Rajasthan