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Kuwait Energy (KEC) ended 2015 on a high, with the onset of Iraqi production reversing two quarters of declining output. However, current output at Iraq’s Block 9 is insufficient to compensate for Yemeni production that has been shut down since April 2015. Along with firms across the industry, KEC is enacting swingeing budget cuts in a bid to weather the storm of low oil prices. The firm says in its Q4 results that it is considering implementing “a 40% reduction in Capital Expenditure, Operational Expenditure and General and Administrative.”
The Middle East-focused independent’s working interest output rose by 1,670 b/d to 25,190 b/d in the fourth quarter of 2015 due to the start-up of production from the Faihaa-1 Well at Iraq’s Block 9. KEC has a 60% operating stake in the asset, alongside Dubai-based Dragon Oil (30%) and the Egyptian General Petroleum Corporation (10%). This reversed two consecutive months of falling overall output for the firm, which remains well down on Q4 2014 production of 26,780 b/d.
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