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Development Activities

• Fast-tracking development of Block 9 and commencement of production.

• 47 development and appraisal wells were spud in 2015 including 40 wells in Oman, five wells in Egypt and two

wells in Iraq.

• Completion of the gas plant and pipeline project in Abu Sennan, Egypt adding approximately 2,000 boepd to

production beginning from April 2015.

In 2015, Kuwait Energy’s development activity was focused on the fast-tracking of Block 9 production from its Faihaa-1

well in Iraq at a rate exceeding 5,000 bopd. We were able to execute the project as per our planned timeline that

resulted in production start-up from the Faihaa-1 well in October 2015, just seven months from when the project

began in April.

In Iraq, the Siba-4 a carryover development well from 2014 was completed and perforated in the Yamama-D reservoir

and produced at a stabilized tested rate of 27.9 mmscfpd of gas and 6,000 bpd of condensate from a 26m interval

in the Yamama-D after acid treatment. Drilling commenced on the Siba-5 development well; however, work was

suspended due to HSSE issues and drilling activities on the location are expected to resume in 2017. Subsequently,

the Siba-6 development well was drilled and tested at the end of December showing 21 mmscfpd of gas and 5,000

bpd of condensate from a 48m interval with no acid treatment. The Siba plant engineering, procurement and

construction works are on-going with the aim to have first gas online towards the end of 2016.

In Egypt’s Area A, the drilling and testing of the SHNW-11 well resulted in a production of 600 bopd, which was within

the range of the high case estimate and post optimization, the production increased to above 1,100 boepd at the end

of December. In addition, the BEA-19 development well in Burg El Arab, Egypt produced 500 boepd, which was also

in the range of the high case estimate.

In Block 5, Yemen, the Group suspended drilling and completion plans due to work stoppages caused by the political

situation in the country and cargo ships being unable to enter the port to export the oil.

Exploration Activities

Two successful 2014 carryover exploration wells and two exploration wells were spud in 2015.

Block 9 demining for 3D seismic corridors was 85% completed.

Block 9, Faihaa-1X well in Iraq, a carryover exploration well from 2014, is the country’s largest oil discovery in the last

10 years. The Mishrif reservoir tested 3,600 bopd on 64” choke size whereas Yamama tested 8800 bopd at 64”choke

size.

The other 2014 carryover exploration well, ASH-1X in Abu Sennan, Egypt, tested successfully from the Alam Al

Bueib sandstone reservoir with rates of 2,755bopd and 2.7 MMscf on 64” choke size. Current rate is 148bopd and

0.27MMscf on 32” choke size.

Two exploration wells were spud in 2015. The first was the commitment well EY-3X in Area A, Egypt, which resulted

in a dry hole. The second well was ZZ-5 in Abu Sennan, Egypt, which exhibited oil and gas shows in Abu Roash C &

E, but no flow was established. A decision was taken to study stimulation options for the well, hence, the rig was

released and well suspended awaiting stimulation job.

In Block 9, Iraq, demining works for the seismic lines corridors, reached 85% completion by December 2015.

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