Kuwait Energy reports impressive Q4 activity
Fourth Quarter earnings reach US$36.4 million, up a massive 90.6%
Kuwait Energy Company KSCC, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, has issued its fourth quarter 2010 activities report, announcing unaudited earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD36.4 million.
Key achievements for the quarter came from it Iraq and Yemen business operations.
The company was awarded by the Iraqi government in October 2010 a 20-year contracts for the development of two gas fields, Siba and Mansuriya. The company had bid for the fields in a consortium comprising the Turkish Petroleum Corporation (TPAO), the national oil company of Turkey for both gas fields. Kuwait Energy will be the operator of Siba, participating with a 60% contractor share and TPAO participating with the remaining 40%. TPAO will be the operator of Mansuriya, participating with a 50% contractor share, while the remaining shares will be held by Kuwait Energy (30%) and Korea Gas Corporation (20%).
In Yemen, Kuwait Energy launched a comprehensive assessment of gas reserves and resources as well as the six-month study addressing the potential development of natural gas reserves in Yemen and the optimisation of the country’s natural gas resources for the benefit of its people following MoU signed with the Yemen Ministry of Oil and Minerals on 6 October 2010.
Kuwait Energy registered a 4.5% increase in its daily average production over the previous quarter. The increase was primarily due to higher production in East Ras Qattara, Egypt and Ukraine.
The company also closed the last quarter of 2010 without any major recordable safety incidents in oil and gas assets where it is operator.
A total of ten development wells were successfully drilled in the Karim Small Fields in Oman.
An exploration well in the Burg El Arab (BEA) field in Egypt was completed and put on production at an initial rate of 140 barrels of oil per day. In the Abu Sennan Concession in Egypt, the first exploration well was spud during the quarter.
The company acquired and processed 3D seismic data of 300 square kilometersin Latvia’s offshore blocks and will start identifying exploration prospects to commence drilling activities.
In October, Kuwait Energy signed a five year technology sharing contract with Schlumberger. This contract grants Kuwait Energy access to Schlumberger’s oilfield services expertise and technologies. Kuwait Energy will benefit from oil and gas software and IT infrastructure solutions which improve business performance, reduce exploration and development risk, and realize the full potential of its oil and gas fields.
Kuwait Energy is in the process of completing a pre-IPO Rights Issue to raise $100 million, and is targeting an IPO on the London and/or Kuwaitstock exchanges mid 2011, subject to market conditions. Once listed, thecompany will become one of the few publicly available investment opportunities directlyconnecting investors to the Middle East’s exploration and production sector.
Established in 2005, Kuwait Energy’s portfolio includes 52 oil and gas producing, development and exploration assets in Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan. The Company operates 15 of these assets.