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Operations
Kuwait Energy continues the focus on the MENA region with its presence in Iraq, Egypt, Yemen and Oman.
In Iraq,
Faihaa-2 development well
in Block 9 was spud on 3
January 2016 and by 31 March 2016, it had
reached a
depth of 3,155 meters out of a target depth of 4,535 meters
(
the current depth reached as of the date of issuing
this report is 3,958 m
). Thus far, all formation tops have matched the original design prognosis. The target
completion date is June 2016. The well is expected to produce in August 2016 with in excess of 5,000 bopd (gross).
On 29 March 2016,
Kuwait Energy signed an Export Oil Sales Agreement with State Oil Marketing Company
(SOMO)
– the Iraqi national company responsible for marketing Iraq’s oil – which puts in place the mechanism by
which Kuwait Energy will be paid for services in Block 9, Iraq. Kuwait Energy is expected to be allocated its first
cargo by Q3 2016 covering its production of oil in Block 9 from October 2015 to March 2016.
The Siba Gas Plant’s Engineering, Procurement and Construction (EPC) works are ongoing
. We are working
towards first gas by the end of the year however there may be delays as a result of EPC work being conducted
slower than planned.
Kuwait Energy’s Basra Office has relocated its premises to Al Abass Area, Al Saadi Street, Building 5/89 in April
2016 providing enhanced working facilities and space in line with the Group’s growth in Iraq.
In Egypt, the Company continues its focus on the drilling and development programs, conducting studies and
optimizing production and costs wherever possible.
In Yemen, the Company continues to be in discussions with different governmental stakeholders to define the
future of the assets in Yemen and continues to closely monitor the complex geopolitical situation in the country.
Kuwait Energy remains operationally-ready and will resume production as soon as lifting constraints have been
removed.
Sustainability
As part of our HSSE efforts, Kuwait Energy continues to apply the leading HSSE auditing programmes; working on
the recertification of the ISO 14001 and OHSAS 18001 certification, and installing a firefighting network in several
of its operating areas.
O
UTLOOK