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Chief Executive Of cer’s Report
In 2015, Kuwait Energy has once again demonstrated
the resourcefulness and innovativeness of our team,
positioning us as a forward-thinking independent oil and
gas company under a very challenging environment for
the industry.
For the year, we recorded an average daily working
interest production of 25,000 boepd, a 1% year-on-year
decrease from 25,252 boepd in 2014. This decrease is
mainly due to Yemen production being shut down since
April 2015. Despite the production shut down from our
Yemen assets, Kuwait Energy managed to compensate
for the shortage by directing its resources to drill more
wells in Egypt, which increased the Egypt production
by 20% compared to 2014. This increase, coupled with
Block 9 production commencement in October 2015,
aided in minimizing the production drop to only 1% from
2014 production.
Egypt continued to be a major contributor to production,
with a daily average working interest production of
20,942 boepd. The gas plant and pipeline project in Abu
Sennan, Egypt, which we completed in April, contributed
approximately 2,000 boepd to production.
Our development activity in 2015 was focused on fast-
tracking early production from the Faihaa-1 well on
the Block 9 oil field which was achieved in October at
an initial gross oil rate in excess of 5,000 bopd. By the
end of 2015 we had delivered 200 thousand barrels of
working interest oil production. We share the success
of the Block’s fast-track plan with our main partner, the
South Oil Company, which supported our plan, enabling
us to begin production just seven months from when
the project began.In our Siba gas field, tests for the
Siba-6 development well showed 21 mmscfpd of gas and
5,000 bpd of condensate. Engineering, procurement and
construction works for the Siba Plant are on-going with
the aim to commence production of first gas by fourth
quarter 2016.
In Yemen, drilling and production are suspended,
however we continue our HSSE activities including
facilities maintenance and routine safety inspections to
ensure full preparedness when the circumstances allow
us to resume our operations.
In addition, Kuwait Energy signed a Consultancy Services
Contract for Integrated Enhanced Oil Recovery for
Kuwait Oil Company with Surtek Inc. This contract marks
our initial entry into Kuwait as further projects are being
pursued.
The decline in oil prices, significantly impacted on 2015
revenue of US$155.6 million, a decline of 43% from 2014
despite similar annual production sales. The prevailing
lower oil prices also led to an impairment of US$69.0
million from Block 5 in Yemen, Burg El Arab and Abu
Sennan areas in Egypt, Siba and Mansuriya in Iraq which
is the major contributor to the 2015 reported loss of
US$62.4 million.
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