Kuwait Energy due IFC aid for Egypt, Yemen

Uchenna Izundu
OGJ International Editor

LONDON, Sept. 25 -- Kuwait Energy Co. has secured $50 million from the International Finance Corp. for exploration and development in Egypt and Yemen and support of its environmental and social management activities.

In Egypt, KEC has interests in three onshore producing assets (Area A in the Gulf of Suez and the East Ras Qattara and Burg el Arab concessions, both in the Western Desert), one development asset (Abu Sennan in the Western Desert), and an early exploration asset (Block 6 in Southern Egypt).

In Yemen, KEC has one producing asset (Block 43, onshore, Central Yemen) and interests in six exploration assets, all onshore in Central Yemen with the exception of Block 15 (off Al Mukalla in the Gulf of Aden). Block 43 is expected to cease production shortly.

The company recently announced oil discoveries at Shukheir Northwest in Area A along the Gulf of Suez coast and Shahd Southeast and Rana Southeast in the East Ras Qattara south of Alexandria. It plans to drill five exploration wells and five development wells before yearend.

In August, the company reported a new oil field, Al Zahraa, in East Ras Qattara. It was KEC’s fourth discovery in the country, producing 2,615 b/d of oil, and is operated by Sipetrol. KEC has a 49.5% working interest.

According to the company’s second quarter results, it was producing an average of 1,120 boe/d of oil in Yemen.

The IFC and Kuwait Energy have drafted a detailed environmental and social action plan for Egypt and Yemen. “The environmental and social management plan will be implemented over the next year in a series of gradual steps starting this month, September 2009,” an IFC spokesman told OGJ.

The bank will also assist with a potential listing on an international stock exchange in 2010 by carrying out an in-depth corporate governance assessment of Kuwait Energy.

Established in Kuwait in August 2005, Kuwait Energy is an independent petroleum company with operations across the Middle East, North Africa, Eastern Europe, and Pakistan.

Contact Uchenna Izundu at [email protected].