Kuwait Energy Receives First Cargo from Block 9, Iraq

15 - November - 2016

Kuwait Energy Receives First Cargo from Block 9, Iraq

Kuwait City, Kuwait – 15 November 2016: Kuwait Energy plc (“Kuwait Energy”) is pleased to announce its first cargo allocation from Iraq covering its Block 9 oil production. The shipment covers Kuwait Energy’s share of production until June 2016.

This follows the signing of the Export Oil Sales Agreement with State Oil Marketing Company (SOMO), the Iraqi national company responsible for marketing Iraq’s oil, in March 2016.

In accordance with the Export Oil Sales Agreement, the first cargo of Basra Light Crude Oil has been lifted for a total quantity of 525 kbbl where Kuwait Energy’s share is 315 kbbl; equivalent to a provisional amount of US$11.8 million, and the remaining quantity is split between the other joint venture partners as per their share in the concession.

Sara Akbar, CEO of Kuwait Energy said:

“Today represents a historical milestone in the life of Kuwait Energy as this marks our first payment from Iraq. The recent Export Oil Sales Agreement has put in place a mechanism to receive payments through crude oil liftings for our expedited production from Block 9. We are delighted to have such strong partnerships, particularly with the Iraqi Ministry of Oil, which was crucial to reach this milestone.”

As for Q3 2016 Block 9 production; Kuwait Energy has already invoiced the Iraqi government for production during this period. Kuwait Energy will receive its next cargo from Iraq once it has built enough receivables to be allocated a shipment for the consortium. Shipments may include sales of previous quarters depending on the oil price and production quantities.

Kuwait Energy holds a 60% participating interest and is the operator of the Block 9 concession, while Dragon Oil holds 30% and the Egyptian General Petroleum Corporation holds 10%.

About Kuwait Energy:
Kuwait Energy is an independent oil and gas company actively engaged in the exploration, appraisal, development and production of hydrocarbons.
Kuwait Energy’s MENA portfolio consists of 10 oil and gas assets across Egypt, Iraq, Yemen and Oman of which it operates 7 assets.
As at 31 December 2015, Kuwait Energy’s 2P working interest reserves are 818 mmboe and YTD September 2016 average daily working interest production was 24,088 boepd.
Kuwait Energy has its registered office in Jersey, its head office in Bahrain, its regional operational hub in Kuwait and area offices in Basra, Baghdad, Cairo and Sana’a.
For Further information, please visit the Kuwait Energy website: www.kuwaitenergy.co

For contact:

Sager Albenali – Corporate Communications Lead 
Tel: +965 2576 7713
E-mail: sager.albenali@kec.com.kw

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