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Health, Safety, Sustainability and Environment

Kuwait Energy classifies its recordable incidents as Fatalities, Lost Time Incidents, Restricted Work Incidents and

Medical Treatment Incidents.

The

lone LTI incident for the period

was at the Block 9 concession in Iraq. The LTI occurred when 2 local workers

deliberately and recklessly crossed a minefield barricade leading to an ERW being triggered, causing injuries to both

men. Thankfully, due to the onsite medical facilities and trained medical team, both individuals were administered

swiftmedical care before being evacuated via seismic ambulance to Basra hospital. Operations at Block 9 were halted

for a day to allow Kuwait Energy staff to carry out a

thorough investigation into the incident

.

The table below provides the number of days without LTI at the end of March 2017 compared to figures at the end

of 2016 for the countries in which Kuwait Energy operates:

Country

Days without LTI

(at the end of

March 2017)

Days without LTI (at the of end of

2016)

Iraq

14

816

Egypt

410

320

Yemen

1032

576

Production

At the end of the reporting period, Kuwait Energy achieved

average daily WI production

of

26,941 boepd

. The

2016

average daily WI production

as reported in the last QAR was

24,573 boepd

; the current YTD average for 2017 is

nearly 10% higher than that for 2016.

Thanks to the commencement of production from the Faihaa-3 well, as part of our

Block 9 Fast-Track development

program,

Kuwait Energy’s Block 9

average daily WI production stands at over 10,000 boepd.

These levels will

increase throughout the year as we continue to drill more wells on the concession.

Block 9 production for the reporting period has been lower than anticipated; this is primarily due to

production

being purposely limited as the Company carried out necessary upgrade works to the facilities

. The upgrade works,

which are now complete, were a necessity to allow for the storage and processing of the

anticipated increases in

production at Block 9 for 2017 and beyond

.

In Egypt,

production targets for YTD 2017 have been exceeded

, with

Egyptian average daily WI production of

16,338 boepd

. The exceeded Egyptian target is primarily due to our efficient work over and well management

program.

O

PERATIONAL

A

CTIVITY