22
23
Individuality and
freedom of art
creativity are
the substance
of this work. The
confrontation with
reality rather than
describing it has
always been the
mission of abstract
painting, and
this work is not
an exception. A
gradual transition
from dark to light
colors accompanied
with free brush
strokes with hot
and lively colors;
are the means of
conveying this idea.
The overall result is
a strong contrast
between light and
the darkness out of
which it comes.
Fatin Shawaibi
Revolution
Exploration drilling
Eight exploration wells were drilled in 2011 resulting in five discoveries. Discoveries were all in Egypt on the Abu Sennan,
Area A and ERQ assets. The success added 9.3 mmboe to proven and probable reserves and 3.5 mmboe to 2C reserves.
More than half the discoveries were in wells where Kuwait Energy acts as operator.
In Abu Sennan, gas and condensate was discovered in the Al Ahmadi-1X well whilst oil was discovered in the Al-Salmiya-1X
and Al Jahraa-1X wells. Initial test flow rates were 2,900 boepd, 5,600 boepd and 835 boepd respectively.
In Area A, oil was discovered in the Ahmad-1X well whilst the other oil discovery occurred in the Shebl East-1 well in Block
ERQ. Initial test flow rates were 890 boepd and 1,500 boepd respectively.
During 2011, the Company’s finding cost has averaged US$3.90 per barrel of oil equivalent, which is an outstanding
achievement and is further evidence of the Company’s financial and operational expertise.
Geophysical and Geological Studies.
During 2011, Kuwait Energy’s geophysical and geological studies led to a substantial rise in proven and probable reserves
in Russia and a very large increase to prospective resources in Block 6 – Mesaha, Egypt; both of these events are exciting
opportunities which could pave the way for high-impact, frontier exploration drilling in the near future.
In Block 6 – Mesaha, Egypt, a frontier exploration block with acreage more than two times the size of Kuwait, the
processing of seismic data contributed to the increase in prospective resource for Kuwait Energy.
Overall 800km of new 2D and 82km
2
of new 3D, seismic data was acquired. Previously acquired 3D data covering Latvia,
Ukraine and Russia was also processed. This has generated a number of new prospects and leads, including a near term
drilling location in Latvia being identified.
Business Development
Kuwait Energy’s excellent growth to date, and status as one of the MENA region’s fastest growing exploration and
production companies, has always been underpinned by having ambitious targets.
The Company’s expansion strategy over the medium term draws on this principle with a 2015 target of achieving 75,000
boepd, proven and probable reserves of 400 mmboe, to be achieved by a mix of both organic and acquisition growth.
Kuwait Energy aims to achieve this by fulfilling the potential of existing exploration and production assets and
complementing this with selective, attractive M&A opportunities which could involve further geographical diversity
within the MENA region.
Whilst the current turbulence in theMENA region, has inevitably presentedoperational challenges, most of all it represents a
significant opportunity for the Company. There is potential to acquire assets and build business development relationships
in existing countries such as Iraq, Egypt and Yemen, capitalizing on the Company’s local knowledge and network of
contacts. There is also scope to expand the business in the MENA region beyond existing areas of operation.
Business development highlights during 2011 included; the signing of two 20 year gas development & production service
contracts with the Iraqi Ministry of Oil for the Siba and Mansuriya fields; receipt from the Yemen Government of approval to
proceed with plans for a small scale LNG project to utilize flared gas; and the signing of an MOU in July 2011 with the Egyptian
General Petroleum Corporation, developing a strategic alliance between the companies to develop future projects.
