Kuwait Energy hires advisor to sell Iraq asset

Kuwait Energy, a private oil and gas firm, has appointed investment bank Perella Weinberg Partners (PWP) as financial advisor regarding the options of selling all or part of its Block 9 asset in southern Iraq and a spin-off of Egyptian assets, Reuters reported, citing sources familiar with the matter.

The purpose of this move is to provide liquidity for the company’s shareholders, in addition to repaying debts, Reuters said.

This follows the failure of merger negotiations between Kuwait Energy and London-listed SOCO International in March. The two sides had not reached “mutually acceptable transaction terms,” the Kuwaiti company said.

Kuwait Energy started the merger discussions with SOCO after failing last year to complete an initial public offering (IPO) on the London Stock Exchange, through which it planned to raise about $150 million.

Earlier this year, the company sold an 8.57 per cent stake in Block 9 to Dragon Oil, a subsidiary of Dubai’s Emirates National Oil Company (Enoc), for $100 million. This was to settle an ownership dispute with the UAE firm, giving it an additional 6.43 percent stake in the block.

Kuwait Energy’s operations in Iraq are focused on three assets, including Block 9, while in Egypt it has interests in four oil and gas fields.