Saudi Wins Out, Opec Switches To Group Ceiling
22 Jun, 2018
Corporate
Kuwait Energy: Could Stretched Finances Force Firm From Key Iraq Asset?
25 May 2018
The 2014 discovery of the 1.13bn barrel Faihaa field by Kuwait Energy was the biggest exploration success of Iraq’s post-2009 upstream opening. But plans to develop the field to 250,000 b/d by the mid-2020s are threatened by an onerous debt burden.
Iraq has been the great success story for private sector firm Kuwait Energy (KEC) in recent years as it has offset slumping Egyptian output. Yet finding itself overleveraged and lacking liquidity, the Mena-focused independent is contemplating selling up and walking away from its key Iraqi asset. Such a move would enable it to pay off its debt but at the expense of some 40% of its current net output, and potentially a much higher share in future.
KEC has hired financial services firm Perella Weinberg Partners to advise it on options “that could include selling all or part of its...
