Kuwait Energy is estimated to have pumped approximately $400 million of investments into the Egyptian petroleum sector, as the company increases exploration and production activities in the country.
As part of its drilling plan for the fiscal year 2011-2012, Kuwait Energy has conducted various drilling operations in Egypt. The company has completed the drilling of two new exploratory wells in the country.
One of the wells, dubbed W.AHMED-1X ST-1, was drilled in the company’s Eastern Desert concession area and is Currently in the appraisal stage. Drilling was conducted to a depth of 3,632 feet using the ECPC-1 rig, with costs reaching $1.72 million.
The other exploratory well, the HAWALLI-1X well, was drilled in the Abu Sannan field in Kuwait Energy’s Western Desert concession with investments of $1.8 million. The well was drilled with a ZJ-46 rig to a depth of 6,500 feet, and produced a dry hole.
Kuwait Energy also achieved a new discovery in the Abu Sannan field at the beginning of March, via the Salama-1 well, the fourth find the company has made in the field following the GPZZ-4 and Ahmadi-1 wells in 2011 and the Jahra-1 well in January of the current year.
Initial production reports for the Salmeya-1 well revealed preliminary commercial production of 5,600 barrels of crude oil per day. Kuwait Energy’s overall production from the Abu Sannan concession is expected to reach 10,000 barrels per day.
The company owns a 50% share in the Abu Sannan concession; Dover Investments Limited and Beach Petroleum Egypt Limited own 28% and 22% respectively. Following the latest find, Kuwait Energy’s discovery tally in Egypt has risen to 16 discoveries since the company began operating in the country in 2008.
Despite its relatively small size, the company’s Egyptian operations contribute the largest share to Kuwait Energy’s working interest; its production rate had reached 17,700 barrels of oil equivalent by the end of 2011.
Kuwait Energy operates in a number of areas in Egypt: Abu Sannan, Borg Al-Arab, RasQatara, the Gulf of Suez, and Al-Mesaha in Ganoub Al-Wadi near the Egypt-Sudan border. The company’s total production has reached 23,000 barrels per day, up from 4,000.
Kuwait Energy was established in August 2005 in Kuwait as an independent oil and gas exploration and production company. Currently, the company operates in eight countries, namely Egypt, Yemen, Iraq, Oman, Ukraine, Latvia, Russia and Pakistan.