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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, the
Faihaa-4 well,
Block 9, was
spud on 21 April 2017
. We anticipate
production from the well to commence
in 2H 2017
. Kuwait Energy also seeks to
drill and complete another well at Block 9, Faihaa-5
, by the end of the year.
As explained previously,
SOMO have allocated a further crude cargo shipment of 350 kbbl (Kuwait Energy Share)
of Basrah Light Crude Oil for Kuwait Energy
. It must be noted that for the previous cargo allocation, it took Kuwait
Energy 9 months to build up the requisite receivable level. As the Company increases the well count in Block 9 we
anticipate the periods between crude payments to fall even further, or alternatively the Company will have
the
option to be allocated even larger crude cargo shipments from SOMO
.
The Iraqi crude cargo shipment, as per the terms of our
Forward Sales Agreement, signed in December 2016
, will
be marketed by Vitol. The proceeds of the crude sale will be apportioned between Kuwait Energy and Vitol, with the
Vitol share of the crude cargo offsetting the Forward Sales Agreement facility.
The Siba Gas Plant’s Engineering, Procurement and Construction (EPC) works
are ongoing and progressing on the
ground.
The Farm-Out to EGPC
, detailed in the last QAR, has
received all necessary government and pre-emption
approvals
and we are currently
awaiting the final signing ceremony
, the date of which is currently being determined
by the Iraqi and Egyptian governments.
In Egypt, Kuwait Energy will continue its
well management and work over program
to optimize production from its
mature assets. The
Farm-Out to Global Connect
, announced in the last QAR, should
receive government and pre-
emption approval by Q3 2017
.
In Yemen, Kuwait Energy continues to monitor the situation and is
operationally-ready to
commence production
when the situation permits.
Sustainability
As part of our HSSE efforts, Kuwait Energy continues to apply the leading HSSE auditing programs; as shown by
Egypt’s Area A and Cairo Office’s
recertification of their ISO 14001 and OHSAS 18001 certification
during 2016.
O
UTLOOK