IFC to finance Kuwait Energy

The International Finance Corporation (IFC), which is a member of the World Bank Group, has signed a US$50 million financing agreement with Kuwait Energy Company. It is to help the company accelerate the development and exploration of its oil and gas assets in Egypt and Yemen.

As well as that, the money will also be used to promote good environmental and social management in the region's oil and gas sector.

The financing package from IFC, will consist of a US$35 million reserve based facility, and a US$15 million income participation facility. The financing uses a murabaha structure, said a press statement.

Also, Kuwait Energy has sought IFC's input an environmental, social and corporate governance best practices. Kuwait Energy and IFC, have jointly developed a detailed environmental and social action plan to enhance operations in Egypt and 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.

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."

IFC, is also planning to conduct a corporate governance assessment for Kuwait Energy to help it prepare for a potential listing on an international stock exchange.

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.

 

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