Kuwait Energy Basra Limited (KEBL) has secured a $346 million reserve-based lending (RBL) facility to support continued development of Iraq’s Block 9 oilfield in the country’s south.
The financing was arranged by the The Arab Energy Fund as the initial mandated lead arranger and structuring bank. Kuwait Finance House (DIFC branch) and Trafigura Pte. Ltd. joined as mandated lead arrangers during syndication.
About Block 9
KEBL operates Block 9, which includes the Faihaa field in Basra province. The company is a wholly owned subsidiary of United Energy Group Limited, a Hong Kong-listed energy firm.
The funding will support:
- Ongoing drilling campaigns
- Infrastructure upgrades
- Output optimization efforts
Why it matters for Iraq
Iraq is OPEC’s second-largest oil producer and relies heavily on crude exports for government revenue. Southern oilfields account for the majority of national output, making continued investment in these assets critical.
Like many mature oil-producing regions, Iraq faces natural decline rates in aging reservoirs. Projects such as Block 9 help:
- Sustain production capacity
- Maintain export commitments
- Offset output declines in older fields
- Strengthen long-term energy security
Growing use of reserve-based lending
Reserve-based financing structures — where loans are secured against proven oil reserves — have become increasingly popular among Iraqi operators. They allow companies to raise capital for expansion while managing upfront capital expenditure and preserving liquidity.
The new facility is expected to accelerate development at Faihaa as Iraq works to stabilize production and navigate volatile global oil market conditions.
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