Kuwait Energy targets Iraqi production with listing

04 May 2017

Independent producer operates in Egypt, Iraq, Oman and Yemen

Independent oil and gas company Kuwait Energy plans to list on the London Stock Exchange and is looking to raise around $150m to fund regional energy exploration, particularly in Iraq.

The Kuwait-based exploration and production firm operates ten concessions in Egypt, Iraq, Oman and Yemen and is the first Kuwaiti energy firm to seek a premium listing on the London Stock Exchange.

In a note to the exchange, the firm said its plans to develop the Siba gas field and Block 9 in southern Iraq. It also holds a stake in the Mansuriya gas concession in Diyala province.

“We are already producing close to 27,000 barrels of oil equivalent a day (boe/d) in the first quarter of 2017, with a strategy in place to increase that production rapidly, particularly through our Block 9 asset in Iraq which, management believes, has some of the most favourable fiscal terms in the region,” said chief executive Sara Akbar.

Kuwait Energy received its first cargo of crude from its Block 9 concession last year as per its agreement with Iraq’s State Oil Marketing Company, which states the operator will receive payment in oil exports in exchange for sharing in production.

The producer has seen much success in Iraq, as its service contracts in Iraq are based on fixed remuneration rates rather than market prices.

The firm produced around 24,432 boe/d last year across its concessions.

Energy firms in the region are actively considering listing as oil prices have caused a slump in government revenues since prices halved from $100 levels seen prior to 2014. State-held Saudi Aramco plans to float five per cent of its shares next year, while non-Opec producer Oman looks at listing some of its energy firms.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications