Kuwait Energy: Egypt Output Hits Record, Yemen Collapses

> Middle East-focused independent Kuwait Energy (KEC) saw its working interest output fall by almost 3,000 b/d to 24,200 b/d for the second quarter of 2015 as production from its two blocks in Yemen (Blocks 5 and 43) fell to almost zero. The company was producing almost 5,000 b/d in Yemen as recently as late last year, but this fell to a mere 70 b/d in Q2 2015 as the war in the country intensified (see chart).

> This more than wiped out continued gains in output from the company’s core Egyptian operations. Here output hit a record 21,650 b/d in Q2, up by just over 1,000 b/d on the previous quarter and by close to 5,000 b/d on year-ago levels. With the collapse of Yemeni production, and output from Oman (Karim small fields) static at 2,500 b/d, the firm’s reliance on Egypt jumped to 89% of total output, up from just over 70% a year earlier. This further exposes the company’s cash-flow to a country that is notorious for delayed payments. KEC was owed $47mn in receivables by Egyptian state firm EGPC as of end-June, though this is down by $19mn on six months earlier (MEES, 11 September).


DON'T HAVE AN ACCOUNT?


NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?

By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.

UPGRADE