Kuwait Energy Reaps Reward From Iraq Investments

Egypt has provided more than 50% of Kuwait Energy’s production since 2009 but Iraqi output is rapidly closing the gap as the firm eyes a London IPO.

Private firm Kuwait Energy (KEC) only started producing in Iraq in Q4 2015, but Iraqi output is becoming an increasingly integral element of its portfolio. This is partly down to sliding production at its core Egyptian assets, but is primarily due to continued Iraqi gains. And with KEC prioritizing Iraq for investment, the gains are set to keep on coming.

KEC operates Block 9 in Iraq with a 60% stake and is partnered with Dragon Oil (a subsidiary of Dubai state firm Enoc) with 30%, and Egyptian state firm EGPC (10%).

KEC’s net output rose from 6,490 b/d in Q4 2016 to 8,030 b/d in Q1 2017. KEC did not provide information on Block 9’s gross output this quarter, but previous statements put the firm’s net share at 60% of the total. This implies that total Block 9 output rose from Q4’s 11,000 b/d to 13,400 b/d. (CONTINUED - 921 WORDS)


chart Kuwait Energy: Iraq’s Growing Share Of Production (‘000 B/D, Working Interest Basis)