Kuwait Energy
EL-12-211107
5
SUMMARY
License Summary
Table 0.1 lists the licenses held by KE as at 31
st
May, 2014, as represented by KE, to
which Reserves and/or Resources have been attributed. In Egypt and Yemen, each of
the licenses is governed by a Production Sharing Contract or Agreement (PSC/PSA),
except for Area A (Egypt), which is governed by a Service Contract. In Iraq, Block 9 is
governed by an Exploration, Development and Production Service Contract (EDPSC) and
each of Siba and Mansuriya by a Gas Development and Production Service Contract
(GDPSC). In Pakistan, a tax/royalty fiscal regime is applicable.
KE additionally holds a 20% interest in Medco LLC, a subsidiary of Medco International
Enterprise Ltd. Medco LLC holds a 75% interest in, and operates, a Service Agreement
for the Karim Small Fields (KSF), a group of oil fields in southern Oman. The agreement
is for the provision of the technical services required for the operation of KSF on behalf of
Petroleum Development Oman (PDO), the license holder, and runs until 7
th
August, 2016.
Overview
The focus of KE’s development activities in the last few years was initially in Egypt, where
it is or has become Operator of three of the assets in which it holds an interest. The scale
of KE’s operated activities then expanded with the award of the contract for the Siba gas
field in Iraq in 2011, the acquisition of an interest in Block 5 in Yemen in late 2012, and
the award of the contract for Block 9 in Iraq in early 2013.
In Egypt, operated production is mainly from Area A, where a number of fields have been
in production since the 1960s. In the largest of these, Um El Yusr (Yusr), KE has drilled a
number of infill wells in the past three years, which have maintained production from this
field at approximately 3,000 bopd, and has also begun a water injection project, which it
plans to expand from 2015 onwards. KE had a significant exploration success in Area A
in 2008 with the discovery of the Shukheir NW field, which has produced 6.5 MMBbl and
was still producing 3,600 bopd in May, 2014. Elsewhere in Egypt, KE took over as
Operator (jointly with EGPC) of the Burg El Arab (BEA) field in 2009; although in
production since 1996, KE estimates that the recovery factor to date is only 2-4%. KE
has drilled 11 wells in BEA since 2009, with mixed results; operational performance has
been notably improved since 2011 and new production facilities were installed in 2013.
From a low of 200 bopd at end 2010, production peaked at approximately 2,000 bopd in
mid-2012 and reached this value again in late May, 2014, with 12 further wells planned in
2015-2017. KE also operates the Abu Sennan license (again jointly with EGPC), where
four discoveries were made 2011-2012. Although appraisal and test production results
have been mixed, further development of three of the fields is planned, including
construction of a gas export pipeline which KE expects to be operational in 2014, and
production could rise from 1,500 bopd in March, 2014 to a peak of 6,000 bopd in 2016
(2P case) if the plans are successfully executed.
