Annual Report

“World class giant oil field

discoveries were made at the Faihaa-

1X exploration well in Iraq, Block 9.”

Sara Akbar, CEO

Operations Performance

Production

Kuwait Energy achieved an 8% year-on-year production increase in 2014, with an average daily working

interest up from23,360 boepd in 2013 to 25,252 boepd. This increase is primarily the result of the successful

development and outstanding performance of existing Shahd wells in Egypt’s ERQ concession.

Egypt continued to be a major contributor to 2014’s production, with a daily average working interest

production of 17,483 boepd. This accounted for 69% of the Group’s production – an increase of 20% from

2013. The country’s two major contributing assets were ERQ and Area A, which delivered a daily working

interest average production of 10,990 boepd and 4,419 boepd respectively.

In addition to Egypt’s contribution, assets in Yemen delivered 4,457 boepd daily average working interest

production. This was despite Block 5 being shut down for a total of 34 days, due to disruption to the main

export pipeline.

Development Activities

• 48 development and appraisal wells were spudded in 2014 – including Siba-4, the first well Kuwait

Energy has drilled in Iraq.

• Significant progress was achieved constructing facilities in Siba, Iraq and a gas pipeline in Abu

Sennan, Egypt.

• Licence status in Egypt is as follows:

- ERQ: Shahd-SE and Diaa development leases extended.

- Abu Sennan: 25% of leases relinquished.

During the year, 48 development and appraisal wells were spudded, including 34 in Oman, 13 in Egypt and

one in Iraq. The most successful development wells were Shahd SE-8 and Shahd SE-9 in ERQ, Egypt, which

delivered an average gross production rate of 4,200 boepd and 3,300 boepd respectively. Good oil rates

were also initially achieved at the El Salmiya and Al Jahraa wells in Abu Sennan, Egypt, although both fields

are currently restricted due to high associated gas ratios (GOR).

In Egypt’s Area A, the drilling and testing of the SHNW-10 well resulted in a 600 bopd rate which was twice

that was expected. This confirms the strong potential of the Shukheir North West field that we will be

further investigating.

In Block 5, Yemen, we suspended our drilling and completions campaign due to work stoppages caused

by local tribes and general regional unrest. Despite these interruptions, crude oil shipping was stable

throughout the year, with the exception of asset shutdown in May 2014.

Going forward, the operational activities will be geared towards Iraq projects: Siba gas field and Block 9 fast

track developments. These are in addition to development projects in Egypt and Yemen.

The majestic blue sky over Faihaa-1X rig

Majid Hussain

Iraq Country Office President

“Developing our Iraq projects will be

our core focus following the recent

discovery in our Block 9 asset.”