The The Arab Energy Fund has closed a major $346 million financing deal to support oil production in southern Iraq.
The money will go to Kuwait Energy Basra Limited (KEBL), the company that operates Block 9 — also known as the Faihaa Field — in Basra. KEBL is fully owned by United Energy Group Limited, a global energy company listed in Hong Kong.
What the money will do
The financing is structured as a reserve-based lending (RBL) facility. In simple terms, that means the loan is backed by the oil reserves in the field.
The funds will help pay for the next phase of development at Block 9. This includes:
- More drilling
- Upgrading infrastructure
- Improving production capacity
The goal is clear: increase oil output and strengthen Iraq’s energy sector.
Who’s involved
The Arab Energy Fund was appointed in 2024 to lead and structure the deal from start to finish. It managed the process all the way to financial close.
Later, Kuwait Finance House and Trafigura joined the deal as Mandated Lead Arrangers during the syndication phase.
Nicolas Thévenot, Chief Banking Officer at The Arab Energy Fund, said the successful closing shows the Fund’s ability to handle complex energy financing deals based on real operational needs.
He said the partnership will support the continued expansion of Block 9 and help strengthen Iraq’s broader energy ecosystem.
Why Block 9 matters
The Faihaa Field is considered an important upstream asset for Iraq’s long-term oil production plans. Projects like this are seen as key to maintaining output levels and improving energy security.
For Iraq, the message is simple: more investment in production today means stronger energy stability tomorrow.
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