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7

Operations

Kuwait Energy continues to

focus on the MENA region

with a direct presence in Iraq, Egypt, Yemen and Oman.

In Block 9 (Iraq), the

Faihaa-4 well,

which was

spud on 21 April 2017

, has seen drilling activities advance significantly;

it is anticipated that

production from the well will commence before the end of Q3 2017

. The Company has

commenced the planning for

Faihaa-5 and spudding is expected in Q4 2017.

A direct result of the increased well

count at Block 9 is that the Company will have the option to either decrease the periods between crude payments,

or alternatively take up the

option of larger crude cargo shipments from the Iraqi State Oil Marketing Company

(“SOMO”)

.

Key to the development of the Block 9 asset has been the Vitol

Forward Sales Agreement, signed in December 2016.

The latest drawdown

from the facility in mid-May 2017 will aid the Company in financing the Faihaa-5 drilling, 3D

seismic studies of the Block and future planned drilling activities at the concession.

The Siba (Iraq) Gas Plant’s Engineering, Procurement and Construction (EPC) works

are ongoing and nearing

completion. The Company

anticipates that first gas will now be Q1 2018,

where the facility will initially be processing

50 mmscfd per day, before ramping up to a plateau of 100 mmscfd

.

In Egypt, Kuwait Energy will continue its

well management and work over program

to optimize production from its

mature assets. The Abu Sennan

Farm-Out to Global Connect

, announced in the last Operation Activity Report

(“OAR”), should

receive government and pre-emption approval by the end of 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

in July 2017.

O

UTLOOK