Advising on US$346m reserve-based financing for The Arab Energy Fund

We have advised on the successful closing of a US$346m reserve-based financing facility led by The Arab Energy Fund for Kuwait Energy Basra Limited.
 
The financing will support the next phase of development and expansion of one of the largest independent-operated oil field developments globally, enabling continued drilling activity, infrastructure optimisation and enhanced production potential. The facility comprises both a conventional loan and Islamic financing structured as a commodity Murabaha.
 
The Arab Energy Fund acted as initial mandated lead arranger and structuring bank on the transaction, with Kuwait Finance House and Trafigura participating as mandated lead arrangers at the syndication stage. 
 
We advised on the transaction through a team led by Catherine Overton, partner in our Banking & Finance team alongside lead counsel Herbert Smith Freehills Kramer. 
 
Commenting on the transaction, Catherine Overton said: 'This financing reflects the continued appetite for sophisticated reserve-based structures in the energy sector, even in complex and emerging jurisdictions. We were pleased to work with The Arab Energy Fund and the wider deal team on a transaction that supports the long-term development of a strategically important asset.'