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“World class giant oil field
discoveries were made at the Faihaa-
1X exploration well in Iraq, Block 9.”
Sara Akbar, CEO
Operations Performance
Production
Kuwait Energy achieved an 8% year-on-year production increase in 2014, with an average daily working
interest up from23,360 boepd in 2013 to 25,252 boepd. This increase is primarily the result of the successful
development and outstanding performance of existing Shahd wells in Egypt’s ERQ concession.
Egypt continued to be a major contributor to 2014’s production, with a daily average working interest
production of 17,483 boepd. This accounted for 69% of the Group’s production – an increase of 20% from
2013. The country’s two major contributing assets were ERQ and Area A, which delivered a daily working
interest average production of 10,990 boepd and 4,419 boepd respectively.
In addition to Egypt’s contribution, assets in Yemen delivered 4,457 boepd daily average working interest
production. This was despite Block 5 being shut down for a total of 34 days, due to disruption to the main
export pipeline.
Development Activities
• 48 development and appraisal wells were spudded in 2014 – including Siba-4, the first well Kuwait
Energy has drilled in Iraq.
• Significant progress was achieved constructing facilities in Siba, Iraq and a gas pipeline in Abu
Sennan, Egypt.
• Licence status in Egypt is as follows:
- ERQ: Shahd-SE and Diaa development leases extended.
- Abu Sennan: 25% of leases relinquished.
During the year, 48 development and appraisal wells were spudded, including 34 in Oman, 13 in Egypt and
one in Iraq. The most successful development wells were Shahd SE-8 and Shahd SE-9 in ERQ, Egypt, which
delivered an average gross production rate of 4,200 boepd and 3,300 boepd respectively. Good oil rates
were also initially achieved at the El Salmiya and Al Jahraa wells in Abu Sennan, Egypt, although both fields
are currently restricted due to high associated gas ratios (GOR).
In Egypt’s Area A, the drilling and testing of the SHNW-10 well resulted in a 600 bopd rate which was twice
that was expected. This confirms the strong potential of the Shukheir North West field that we will be
further investigating.
In Block 5, Yemen, we suspended our drilling and completions campaign due to work stoppages caused
by local tribes and general regional unrest. Despite these interruptions, crude oil shipping was stable
throughout the year, with the exception of asset shutdown in May 2014.
Going forward, the operational activities will be geared towards Iraq projects: Siba gas field and Block 9 fast
track developments. These are in addition to development projects in Egypt and Yemen.
The majestic blue sky over Faihaa-1X rig
Majid Hussain
Iraq Country Office President
“Developing our Iraq projects will be
our core focus following the recent
discovery in our Block 9 asset.”