Kuwait Energy II

completed

KEC, a privately-owned oil and gas exploration and production company focused on the Middle East North Africa region, was founded in 2005 by former employees of Kuwait Oil Company. Headquartered in Kuwait City, KEC has working interests in ten producing and twelve exploration assets in Egypt, Yemen, Oman, Ukraine, Russia and Cambodia. KEC has net proved and probable (“2P”) reserves of 55.7 million barrels of oil equivalent (boe) and total potential resources of 260 million boe. Current working interest production is around 12,000 boe per day.KEC is operator of a number of assets in Egypt, Ukraine and Yemen, including:- Egypt: three onshore oilfields in production tied into existing state-run processing and export infrastructure, and one exploration field;- Ukraine: one gas field in production, including a gas processing plant tied into the national grid that commenced operations in late 2007, one oil field in production and one exploration field;- Yemen: three exploration fields (field activities not started).KEC’s planned investment program includes (i) drilling eight development wells in KEC’s three producing assets in Egypt; (ii) drilling four development wells to increase production in KEC’s main gas producing assets in Ukraine; and (iii) drilling six exploration wells and shooting seismic over various oil and gas exploration targets in Egypt, Ukraine and Yemen.The proposed IFC investment is expected to involve equity of up to $50 million in KEC.IFC’s original investment was an A loan of $35 million and a C loan of $15 million and was made in 2009 to support KEC’s exploration and production activities in Egypt and Yemen.