Kuwait Energy said today that it had inked a forward sale agreement with Vitol that will provide it with a financing facility of up to $100million.
Kuwait Energy, an oil and gas exploration and production company, said it received the first drawdown of $40million on December 22.
The facility will be repaid to Dutch group Vitol via Kuwait Energy’s Iraqi crude entitlement, the firm said in an online statement.
It said $80million would be spent on developing block 9 in Iraq, with the remaining $20million going towards assets in Egypt.
Kuwait Energy chief executive Sara Akbar 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.”