Kuwait Energy, one of the fastest growing independent oil and gas companies in the Middle East, has registered a net profit of $44.9 million in 2012, up 29 per cent from $34.8 million the year before.
Announcing the results at the Annual General Meeting of shareholders, Kuwait Energy executive chairman Dr Manssour Aboukhamseen said the company also netted operating cash flow of $148.2 million, up 32 per cent from 2011.
The daily average working interest production in 2012 touched 17,966 barrels of oil equivalent per day (bpd), up 32 per cent from a year ago, stated Dr Aboukhamseen.
“Kuwait Energy witnessed a record year-end exit production of 17,790 bpd primarily from exploration successes made in Egypt during 2011, which came on stream in 2012, as well as from increased production from the development activities in Egypt and Oman during 2012,” he added.
The company, said Dr Aboukhamseen, continued to be very active operationally with a capital expenditure of $119.8 million that was primarily spent on drilling 49 development wells and spudding seven exploration wells.
“There were two successful exploration carryover wells, Al Jahraa 1X and Al Salmiya 1X, both in the Abu Sennan concession in Egypt. The company also saw two additional exploration successes; one in Abu Sennan (ASA 1X) and one in Area A (West Ahmad), also in Egypt,” he noted.
“These successes added to the excellent exploration success rate for the Company. In the five-year period between 2007 and 2012, the company has achieved an exploration success rate of 53 per cent, with a finding cost for the same period of $8.73 per barrels of oil equivalent (boe),” he added.
Dr Aboukhamseen said Kuwait Energy had also launched the first phase of operations in the Siba gas field in Iraq last year. As a 60 per cent working interest stake holder in the field, Kuwait Energy is the operator.
In addition to organic growth, Kuwait Energy also continued its expansion via selective acquisitions and new licences awarded, he noted.
“In Yemen, Kuwait Energy completed a successful acquisition of “Block 5”, further adding to reserves and increasing production. In Iraq, a significant milestone was achieved reinforcing Kuwait Energy’s presence in Iraq with the Company winning the exploration contract for Basra’s “Block 9” during Iraq’s fourth licensing round,” he added.
On 2013 outlook, Dr Aboukhamseen said, “We will witness a continuation in Kuwait Energy’s activity with a particular focus on our geographical areas of expertise, the Mena region. We plan to assess potential merger and acquisition opportunities in the region that would complement our existing portfolio mix.”
“We also intend to achieve this by utilizing our vast network of relationships while building on our team’s technical expertise to contribute to the company’s continued progress to the next phase of its growth,” he added.
Kuwait Energy said it plans to drill 16 exploration wells and 56 development wells this year.
“In Iraq, the plan is to demine “Block 9” and spud the first exploration well in the Block. In Egypt, an active programme including exploration and development drilling in existing oil and gas assets is planned,” revealed Dr Aboukhamseen.
The mix of robust anticipated organic growth with selective M&A activity, and the widening of the Group’s interests in the Mena region, means 2013 is set to be another exciting year for Kuwait Energy, he added.