Arab Energy Fund secures $346m for Iraq oilfield expansion

The Arab Energy Fund (Taef), formerly known as Apicorp, has secured funding to expand and develop an onshore oilfield in southern Iraq.  

Taef said in a statement that it had raised $346 million for Kuwait Energy Basra Limited (KEBL), the operator of block 9 in the Faihaa field, to support the next phase of block 9’s development.

The financing will allow continued drilling, infrastructure optimisation and enhanced production potential, leading to increased output for Iraq, it said. 

Taef was named in 2024 as the initial mandated lead arranger and structuring bank for the transaction.  

KEBL is a wholly owned subsidiary of United Energy Group Limited, an energy company listed on the Hong Kong Stock Exchange.

Faihaa Field, located north of Basra city and close to the Iran border, covers around 900 square kilometres. Iraq holds some of the world’s largest crude and gas reserves and produces around 4 million barrels per day of oil. It aims to exceed 6 million bpd by 2029.

Last month Taef received approval from Chinese regulators to raise up to 10 billion yuan ($1.4 billion) via so-called “panda bonds”.

It was established in 1975 by 10 Arab oil-exporting countries: Saudi Arabia, the UAE, Kuwait, Qatar, Libya, Iraq, Algeria, Bahrain, Egypt and Syria. The fund’s net income rose 7 percent to $129 million in the first half of 2025, driven by a surge in project funding. Its total funding increased 17 percent to $8.4 billion, while assets rose 15 percent to $12 billion.

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