Kuwait Energy Company KSCC

completed

KEC, a privately-owned Kuwaiti oil and gas exploration and production company, was founded in 2005 by former employees of Kuwait Oil Company (Kuwait’s national oil company). KEC has working interests in nine producing and twelve exploration assets in the Middle East/North Africa (“MENA”), Ukraine, Russia and Southeast Asia. IFC is proposing to provide financing to KEC to: - finance the development of its recently acquired producing and development assets in Egypt and Yemen; and - accelerate exploration in Egypt and Yemen. KEC’s assets in Egypt were mainly acquired in 2008 through various acquisitions and consist of one producing asset where KEC is operator, two other producing assets where KEC is not operator and two exploration blocks one of which is operated by KEC:- Area A comprising four production areas and two exploration areas, onshore along the coast of the Gulf of Suez: operated by KEC. Current production c. 4,000 boepd;- Burg El-Arab (“BEA”) in the Western Desert: in production and operated by Gharib Oil, a local Egyptian oil company. Current production c. 300 boepd;- East Ras Qattara (“ERQ”) in the Western Desert: in production and operated by Sipetrol (Chile). Current production c. 5,000 boepd; Abu Sennan in the Western Desert: exploration block with KEC operating interest;- Mesaha (Block 6) in Upper Egypt is a frontier exploration area close to the border with Sudan: IFC’s client Melrose Resources is the operator of this exploration block.Export of oil production is through existing pipeline infrastructure to terminals in Egypt.KEC has not started field activities as operator in Yemen. Most of the assets were acquired in 2008 and include one non-operated producing asset and six exploration blocks, and KEC is the operating partner in three of these exploration blocks:- Block 43 (Nabrajah): in production and operated by DNO (Norway). Current production c. 4,500 boepd. Oil export is through existing pipeline infrastructure;- Block 49 (Al Maber): an exploration block with CCC Oil and Gas Company (Greece) as the operating partner;- Block 15 (Al Mukalla): an offshore exploration block in shallow to deep offshore waters in the southern coast in Gulf of Aden operated by KEC;- Block 35 (Al Hood): an exploration block with KEC as the operating partner;- Block 74: an exploration block with KEC as the operating partner; - Block 82: an exploration block with Medco Energi (Indonesia) as the operating partner;- Block 83: an exploration block with Medco Energi as the operating partner.