Kuwait Energy Receives Third Cargo from Block 9, Iraq

08 - October - 2017

Kuwait Energy Receives Third Cargo from Block 9, Iraq

Kuwait City, Kuwait – October 8, 2017: Kuwait Energy plc (“Kuwait Energy”) has announced it has received its third cargo allocation from Iraq covering its Block 9 oil production for the first half of 2017 as part of the Export Oil Sales Agreement signed in March 2016 with State Oil Marketing Company (SOMO); the Iraqi national company responsible for marketing Iraq’s oil.

In accordance to the Agreement, out of a shipment of almost the 956 thousand barrels of Basra Light Crude Oil that has been lifted, 800 thousand barrels will be Kuwait Energy’s official allocated share – equivalent to a provisional amount of approximately US$40 million. By the end of 2017, Kuwait Energy will have received over US$70 million worth of overall cargo in compensation for its operation services in Block 9, Iraq.

Moreover, the proceeds of the remaining share of this shipment that is allocated to the Egyptian General Petroleum Corporation (EGPC) – Kuwait Energy’s partner in Block 9 – with a total value of approximately US$7.8 million –  will be paid towards EGPC’s Block 9 and Siba cash calls.

Furthermore, regarding production activities in Block 9, Kuwait Energy anticipates initiation of commercial oil production from its Faihaa-4 well before year-end 2017. Production from Faihaa-4 is expected to add a further 3,000 barrels per day to Kuwait Energy’s overall daily working interest (WI) production.

Chief Executive Officer of Kuwait Energy; Sara Akbar said:

“We are extremely proud to be aligned and working alongside the Iraqi Government and our partners to optimize the fast-track developments of a key asset such as Block 9. We have so far produced over 7 million barrels of oil and are set to increase this further when Faihaa-4 starts producing and two additional wells come on stream during 2018. Moreover, with the constant support we have been receiving from the Iraqi Ministry of Oil, we are confident in our capabilities to continue our development activities in Block 9 while sustaining our cash position in order to continue optimizing value for our shareholders.”

Kuwait Energy holds a 60% participating interest and is the operator of the Block 9 concession, while Dragon Oil holds 30% and the EGPC holds 10%.

About Kuwait Energy:

Kuwait Energy is an independent oil and gas company actively engaged in the exploration, appraisal, development and production of hydrocarbons. Kuwait Energy’s MENA portfolio consists of 10 oil and gas assets across Egypt, Iraq, Yemen and Oman of which it operates 7 assets. 

As at 31 December 2016, Kuwait Energy’s 2P working interest reserves are 810 mmboe and its 1H 2017 average daily working interest production stood at 27,405 boepd.

 Kuwait Energy has its registered office in Jersey, its head office in Bahrain, its regional operational hub in Kuwait and area offices in Basra, Baghdad, Cairo and Sana’a.

For further information, please visit Kuwait Energy website:www.kuwaitenergy.co

For contact:

Corporate Communications Department

  • Sager Albenali – Corporate Communications Lead

     Tel: +965 2576 7713

     E-mail: sager.albenali@kec.com.kw

  • Lara Tarakji – Corporate Communications Officer

      Tel: +965 2576 7700

      E-mail: lara.tarakji@kec.com.kw

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