Revitalizing a Brownfield: Kuwait Energy’s Area A

This month Egypt Oil & Gas had the opportunity to visit Kuwait Energy’s Area A concession located in the Eastern Desert. Accompanied by President of Kuwait Energy Egypt Harry Saul and Vice President of Operations Kamel Al-Sawi, we had the pleasure of touring a portion of Area A’s Shukheir field along with Gamal Afifi the Assistant Field Superintendent, Hamid Fathy the HSSE Manager and Eng. Amr Abd Elrahman.

The Area A Service Agreement encompasses 300 sq km. Kuwait Energy is the operator of the block and holds 70 percent of  its interest while Petrogas holds the remaining 30 percent. The block is very complex, as it is a brownfield which has been producing since 1960. When Kuwait Energy acquired the asset in March 2008 over 150 wells had already been drilled. Drawing on knowledge from pre-existing wells, as well as data collected upon acquisition Kuwait Energy developed a new model for tapping the field’s reservoirs. Mr. Saul explained, “When you have that much information from a brownfield it requires a different skill set to optimize the value.” The company took a carefully thought-out approach, as Mr. Al-Sawi explained, “While revitalizing such mature field we embraced multiple objectives, especially maximizing production while minimizing capital expenses, reducing the inevitable decline rate and minimizing the operating expenses. The team collective approach to meet these objectives was the application of practical and focused engineering and geology tied with the application of enabling technologies, using an approach that combines innovation and experience, we have managed to boost the potential of Area (A) significantly, securing a leading role for Kuwait Energy  in managing this type of mature fields in Egypt and Middle East.” 

Kuwait Energy’s innovative approach successfully revitalized the brownfield. Through implementing their model, the company was able to drastically increase production from 1,800 BOPD at the time of acquisition to over 7,000 BOPD. Not only has the company achieved a notable increase in production, they have also been able to effectively mitigate the decline of the production rate. For the past five years Kuwait Energy has maintained a production rate above 6,000 BOPD for the concession. Currently, the area holds 45 production wells. At the time of our visit the concession area produced 6,600 BOPD, with the new discovery of Shukheir North West field accounting for almost half of the concession area’s production. That said, the company sees even more potential in Area A. Mr. Saul expressed his optimism for the concession saying, “I think there is still a lot of challenging work for us to do in order to fully understand the field… its not a simple pool of oil that you can go in and drill, there is more to be done in order to enhance production from this field.”

Kuwait Energy has done an impressive job at optimizing the returns from Area A. In addition to their remarkable production rate, they have also managed to decrease drilling costs. Prior to acquisition drilling costs were around USD 2.5 million to USD 3.5 million per well, but the company has successfully reduced the costs to USD 1.2 million to 1.7 million per well. As Mr. Saul noted, the company “has been able to manage the field in a way to optimize its value.”

Kuwait Energy’s practical approach is evident in touring the field. While updates continue to be made, pre-existing infrastructure that has retained its efficiency continues to be utilized. It is also notable that the company seeks to minimize its footprint in the area through strategies such as portable camps that can easily be relocated. Additionally, the company also recently installed pipeline to curtail the need for trucking.

Kuwait Energy entered the Egyptian sector in 2006. Kuwait Energy’s success in Egypt spans beyond Area A, as it also holds investments in Burg El Arab, East Ras Qattara, Abu Senaan, and Mesaha. In the short amount of time the company has been here, their ingenuity has led to rapid success, including 20 discoveries in the country. The company’s production rate in Egypt has flourished from 300 BOPD when it entered the country to 31,000 BOPD at present. Kuwait Energy has even bigger ambitions for its operations in Egypt, as Mr. Al-Sawi informed the company is keen to continue increasing production to satisfy Egypt’s domestic demand.

Kuwait Energy Egypt Gives Back to Local Communities

Kuwait Energy aims to provide communities with effective and sustainable development through the company’s corporate social responsibility (CSR) initiatives. In the past year Kuwait Energy Egypt has organized a variety of projects to give back to local communities. A few of the recent programs include: 

KEE Blood Donation Campaign for 2013
Every year, on 14 June, countries around the world celebrate the World Blood Donor Day. This event serves to raise awareness of the need for safe blood and to thank unpaid blood donors for their life-saving gift. The focus for this year’s campaign was “Every blood donation as a gift of life”. With this in mind, Kuwait Energy Egypt (KEE) initiated a blood donation campaign on May 29, 2013 where enthusiastic KEE employees came forward and donated blood to help save lives. The campaign, sponsored by the Ministry of Health, was designated for children who are suffering from Thalasemia disease.

Below is the KEE team participating in this campaign.

Distribution of Stationery at Ras Gharib
In February 2013, KEE continued its ongoing aid to a large segment of underprivileged families in Ras Gharib. KEE provided the El Fardous Foundation in Ras Gharib with necessary school supplies. The donations were provided in order to reduce the financial burden on students and their families during the second term of 2013. A small ceremony was held to distribute KEE’s contributions to this very important cause. The event was attended by a few government officials from Ras Gharib as well as KEE’s Area A field management.

KEE Blanket Campaign in the Upper Field
As a part of the individual CSR awareness program KEE employees together with their families and friends participated in a campaign called “When a blanket is no longer just a blanket!” During this winter campaign KEE employees donated blankets to Dar El Orman, a charity foundation that provides assistance to locals in Upper Egypt. This gesture was strongly supported by KEE employees with the desire to help disadvantaged communities by extending a helping hand to those in need.

Below is a photo during a similar campaign.

By Maya Moseley


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