Kuwait Energy Company, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, announced it has sold a 20% participation interest from its contractor’s share in the Burg El Arab concession in Egypt to Calgary-based oil and gas company East West Petroleum Corporation.
Kuwait Energy will remain the operator of the Burg El Arab concession with a 55% interest from the contractor’s share in addition to the operatorship. Gharib Oil Fields, partner in Burg El Arab, will retain its 25% participation interest.
Kuwait Energy Company Deputy Chairman and CEO, Sara Akbar, said: “The agreement enables Kuwait Energy to align its portfolio with its long-term growth plans. We remain the operator of the concession and are glad to begin our joint venture with East West Petroleum to realize the full potential of the asset.”
East West Petroleum Corporation President and CEO, Greg Renwick, said: “East West Petroleum is extremely pleased to have entered an agreement with a leading Middle Eastern private-sector firm such as Kuwait Energy Company. We look forward to working closely with Kuwait Energy Company to bring unconventional hydrocarbon studies and technologies to the partnership to enhance the value of the Burg El Arab Concession Agreement Area.”
The Burg El Arab concession is situated in the prolific Western Desert area of Egypt. The transaction is subject to customary regulatory approvals, including the endorsement of the Egyptian Government.