Kuwait Energy
EL-12-211107
16
Karim Small Fields, Oman – License Renewal
Medco LLC is discussing a possible renewal of the Service Agreement for a second
10-year period. If the Service Agreement is renewed under the same terms as those
currently applicable, KE’s estimated net pre-tax revenues, expressed in terms of
equivalent barrels of oil, would be as shown in Table 0.12.
TABLE 0.12
SUMMARY OF KE NET PRE-TAX REVENUES DURING A 10-YEAR CONTRACT
RENEWAL PERIOD, EXPRESSED IN TERMS OF EQUIVALENT BARRELS OF OIL
AS AT 31
st
MAY, 2014
Field or Block
KE Net Revenues (MBbl equivalent)
Low Case
Best Case
High Case
Karim Small Fields
(Oman)
133
247
358
Notes:
1.
The above volumes are calculated assuming that the Service Agreement would be renewed on the
same terms as currently apply.
2.
The above volumes are displayed for illustrative purposes only as the terms of the Service
Agreement currently do not allow the Contractor any direct right to oil volumes.
3.
KE net revenues comprise its share of the cost recovery and profit share fees, based on its 20%
equity in Medco LLC, which holds a 75% interest in the Service Agreement.
