Kuwait Energy Co. has finalized the sale deal of Oil Search licenses to develop the Shukair fields, in the Eastern Desert.

Last April, Sydney-listed Oil Search Ltd. announced that it sold licenses to develop oil and gas in regions of Egypt and Yemen to the Kuwaiti company for $200 million, as it seeks to free up funds to develop a liquefied natural gas project in Papau New Guinea.

According to the deal terms, Kuwait Energy is to develop the Shukair fields, held by the Egyptian General Petroleum Corporation (EGPC), which produce approximately 3200 barrels of crude oil per day.

The company achieved lately an oil discovery in Area-A, East Shukair X-2. This new finding requires the drilling of 12 wells in order to develop the field and put it on production. However, due to the high costs and the fall of oil prices, the Kuwaiti company has postponed its development program for this field. It is worth mentioning that the estimated oil reserves of this finding average 10 million barrels.