A new oil discovery in the Western Desert of ASH-2 in the Abu Sennan region, Burg Al Arab Petroleum Company operating in the region completed drilling an exploration well and put it the on production, a rate of 7000 barrels per day of crude oil and 10 million cubic feet of gas per day.
Kuwait Energy holds a working interest in four licenses in Egypt, one of which is governed by a service contract and three of which are governed by PSCs. The East Ras Qattara (ERQ) asset (acquired in 2008) with a 49.5% revenue interest, the Abu Sennan asset (acquired in 2007) with a 25% revenue interest, and the Burg El Arab asset (acquired in 2006) with a current revenue interest of 100%, are located in the Western Desert. The Area A asset (acquired in 2008) where Kuwait Energy has a 70% working interest is located in the Eastern Desert. Kuwait Energy is the operator of three of the four producing assets.
Kuwait Energy produces oil from all four of its assets which make up a significant portion of the Company’s production. The ERQ license area is a significant production asset, representing approximately 27.5% of Kuwait Energy’s total working interest in oil production in 2018. Kuwait Energy’s assets in Egypt were producing approximately 15 kboepd in 2018 representing around 55% of the Company’s total production during that year. The Company since beginning operations in Egypt has managed to achieve an above 50% exploration drilling success rate.
Kuwait Energy enjoys a strong and strategic partnership with the Egyptian General Petroleum Corporation (EGPC), as it does with all host governments where it operates. In 2015, Kuwait Energy was the catalyst in Egypt entering its first external venture as they partnered with the EGPC in Block 9. Later, EGPC became a partner in Siba as well. This alliance further improves the outlook for the Company’s operations in Egypt.
Egypt has 3.3 billion barrels of total proved oil reserves and 75.5 Tcf of proven natural gas reserves as at 31 December 2018*. Its total oil production averaged approximately 0.7 mmbopd and its total gas production averaged 5.7 billion cubic feet per day during 2018.