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Key Elements of Financial Policy
Breakeven Brent Price ($/bbl)
(1)
Source: Company filing.
(1) Peers’ breakeven costs based on Wood Mackenzie to achieve a 10% IRR; Block 9 and Siba breakeven costs to achieve 10% IRR based on Kuwait Energy company model; assumed 10% WACC.
(2) Farm-out completion subject to pre-emption rights and government approvals.
Funding policy aimed at ensuring that sufficient
facilities are available to support business plan
A 3-year plan and 12-month budgeting
process allows Kuwait Energy to regularly
assess cash needs
Investment opportunities evaluated on based on
NPV, investment efficiency and payback period
Targeting primarily operated assets, allowing
control of pace and quantum of spending
Active portfolio management to optimise cash flows
Sale of 10% interest in Block 9 in 2015
Sale of 15% revenue WI / 20% cost WI in Siba
in 2016
(2)
Sale of 25% interest in Abu Sennan in 2016
(2)
Selected Dev’t Projects Globally
64
59
57
55
52
48
29
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TEN Kraken South
Lokichar
SNE Catcher Lake
Albert
Johan
Sverdrup
Siba Block 9
Prudent Financial Policy and Risk
Management
Operator
Country
Ghana UK
Kenya
UK Uganda
Iraq
Norway
Senegal
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