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