Arab Energy Fund Closes $346M Financing for Iraq's Block 9 Development

The Arab Energy Fund (TAEF) has successfully closed a USD 346 million Reserve-Based Financing (RBL) Facility for Kuwait Energy Basra Limited (KEBL), a wholly owned subsidiary of United Energy Group Limited (UEG), to support the expansion and development of Block 9 (Faihaa Field) in Iraq. This financing will facilitate continued drilling, infrastructure optimization, and enhanced production potential at the operating oil and gas field. Kuwait Finance House B.S.C. (c) (DIFC Branch) and Trafigura Pte. Ltd. joined TAEF as Mandated Lead Arrangers, indicating a collaborative financing structure for the project. The deal is notable for its size and the involvement of key players in the energy and finance sectors. TAEF's commitment to supporting energy development in Arab countries is evident, while the participation of Kuwait Finance House and Trafigura highlights the attractiveness of the project to international lenders and commodity traders. The RBL structure, secured against the reserves of Block 9, demonstrates confidence in the field's future production and revenue generation capabilities. This financing underscores the ongoing investment in Iraq's oil and gas sector, despite the inherent risks associated with operating in the region.