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).



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