Kuwait Energy: MEED Assessment

19 September 2012

If Kuwait Energy successfully reaches its 2015 goals, it will become one of the leading independent operators in the region

According to UK oil major BP, the Middle East has remaining proved oil reserves of more than 750 billion barrels. Most of its producing fields are now in a mature stage and in the phase of decline management by various national oil companies. This leaves little room for an independent oil and gas sector.

Kuwait Energy’s production has increased year-on-year since its establishment in 2005 and the company has proved itself not just as an equity partner, but also in the capacity of operator. If Kuwait Energy successfully reaches its 2015 goals, it will become one of the leading independent operators in the region.

In the short term, the company faces several challenges due to political instability in some of its host countries. This is perhaps most notable in Yemen and Iraq, where Kuwait Energy is working on the Siba and Mansuriyah fields and the Block 9 exploration licence. But sticking with these operations during these times of instability could well see the company rewarded in the longer term as new opportunities open up.

Egypt, for example, holds huge potential resources that have, until now, remain untapped. Kuwait Energy maintained its output during the country’s uprising, stopping only briefly for 10 days at the peak of demonstrations in 2011.

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