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The working interests of the Group and its JV partners in the assets it holds in Oman as at the date of this Offering
Memorandum are as follows:
Fiscal
regime
(1)
JV partners
Revenue
interest (%)
(2)
Cost
interest (%)
(3)
Asset
Karim Small Fields ...
SC
Kuwait Energy
(4)
15.00
20.00
Medco International Enterprise
Limited
(4)
51.00
68.00
Vision Oil & Gas LLC
(4)
5.00
6.67
Petrovest General Trading
(4)
4.00
5.33
Oman Oil Company Exploration &
Production LLC
25.00
0.00
(1) SC = Service contract.
(2) Revenue Interest is the percentage interest of the Group in the revenues derived from sale of production from an asset, before taking into
account any taxes, fees, royalties or other payments.
(3) Cost Interest is the percentage contribution of the Group to the costs associated with an asset, before taking into account contractual cost
recovery available to the Group, if any.
(4) Interest held through joint venture company, Medco LLC.
Medco LLC, a joint venture company set up by the Group and its JV partners, holds a 75% interest in, and is the operator
of, a service contract entered into in 2006 for the provision of technical services required to operate the Karim Small
Fields. OOCEP, a state-owned entity, holds the remaining 25%. The direct interest in the Karim Small Fields is held by
Petroleum Development Oman, which is owned by the Sultanate of Oman (60%), Royal Dutch Shell (34%), Total (4%)
and Partex (2%).
The Group holds its interest in the service contract via a 20% shareholding in Medco LLC, equating to a 15% revenue
interest in the service contract. The Group’s JV partners in Medco LLC are Medco International, which holds a revenue
interest of 51%, Petrovest General Trading, which holds a revenue interest of 4% and Vision Oil and Gas, which holds a
revenue interest of 5%. The original service contract runs for ten years, until August 2016. Medco LLC is currently
awaiting approval of the renewal of the service contract for a second 10-year period, until August 2026, from the
Minister of Oil and Gas. The Group manages its activities in Oman from its operational hub in Kuwait.
Production data
The service contract governing the Karim Small Fields does not allow external reporting of the fields’ reserves and
resources at the site. According to GCA best estimates, the Group is expected to derive 0.2 mmboe in net future pre-tax
revenues under the Karim Small Fields service contract. During the expected ten-year renewal period, the Group is
expected to derive 0.2 mmboe in net future pre-tax revenues under the Karim Small Fields service contract, according to
GCA best estimates.
During the first three months of 2014, the Karim Small Fields produced 2,566 average boepd oil on a working interest
basis, which represents approximately 11.4% of the Group’s total average daily working interest production. For the six
months ended 30 June 2014, Oman’s average daily working interest production was 2,552 boepd, with an exit rate as at
30 June 2014 of 2,600 boepd. The following table sets out the Group’s average daily oil production from its oil-
producing asset in Oman for the periods indicated on a working interest basis.
