Welcome To Kuwait Energy

About

Kuwait Energy

Core Competencies:

The KEC Advantage

Kuwait Energy Company’s ability to deliver superior returns rests on its entrepreneurial spirit, its ability to decide quickly on investment opportunities, and the skills and capabilities of its management team. The strengths of our team lie in:

Technical Expertise: Our geoscientists and engineering professionals have specialised experience in onshore and shallow water operations, and secondary and tertiary recovery where cost considerations preclude participation by larger operators and investors with higher overheads.

Financial and Commercial: With first-hand experience in mergers and acquisitions, and an ability to conduct screening, evaluation, selection and closure within the timeframe expected by the industry, Kuwait Energy Company brings a new decisiveness and agility to the table.

Relationships: Contacts are the key, as is trust. This is perhaps one of our greatest strengths. With its effective network of relationships within the Governments of focus countries, national and international oil companies, business associates and partners in the financial community, Kuwait Energy Company is the vital link that can spell success for a hydrocarbon project.

Our Strategy:

Simple but Sound

Kuwait Energy Company’s strategy is sound and simple: through utilising our unique competitive advantages, we will profit from exploiting economically and technically sound oil and gas properties.

We focus on the acquisition and enhancement of mature producing properties with immediate cash flow and potential for reducing costs in addition to the upside provided by exploration potential in the surrounding acreage. Our acquisitions are of intermediate size. They are profitable and held jointly with our strategic partners. The Company’s participation interests range as high as 60% depending on the asset type and stage of the project, providing a balance of risk diversification, profit potential, and ability to influence projects with our technical analysis.

The Company intends to assume operatorship of selected properties. It is presently a technical operator.

Our Portfolio:

Kuwait Energy Company is establishing a balanced portfolio of oil and gas assets, with overall oil to gas ratio of 60:40.

It is our intention that our portfolio will have the following profile:

Asset type	% of portfolio
Mature, producing properties	30% to 40%
Development	40% to 50%
Drilling status exploration	10%
High potential exploration	10%

Focus Countries:

Without limiting ourselves geographically, Kuwait Energy Company will operate primarily in the Middle East, including North Africa, Central Asia and South East Asia.

Within the Middle East and North Africa, we are focusing on Kuwait, Egypt, Oman, Syria and Yemen, with a longer term view on Iraq and Iran. In Central Asia, we are looking at both Kazakhstan and Russia. In South East Asia, we are considering opportunities in Indonesia and Pakistan.

Operational Presence:

On The Ground

Headquartered in the Middle East oil capital of Kuwait City, Kuwait Energy Company presently has evaluation, exploration, development or production operations in six countries: Kuwait, Egypt, Indonesia, Iraq, Oman and Yemen.

In addition to its head office in Kuwait, the Company has representation in Cairo, Jakarta, Muscat and Sana’a, together with three locations in Iraq, Baghdad, Basra and Erbil.

Current Portfolio

Building a Balance

At the time of writing, less than two years after its inception, Kuwait Energy Company had active producing properties in three countries, together with others under development, exploration, evaluation or negotiation. These flagship investments indicate the nature of oil and gas properties in which Kuwait Energy participates. The Company is actively seeking to balance out its portfolio with more gas interests.

Sultanate of Oman: The Company holds 15% of a joint venture with Medco that has entered into a service contract through to 2016 for the development of a cluster of 18 onshore oil fields known as the Karim Small Fields in the Nimr-Karim area in southern Oman. Current production averaging about 13,000 bpd is expected to more than double to 40,000 bpd within three years.

Egypt: The Company holds two oil interests in Egypt’s Western Desert, with a 50% working interest in the Burg Al-Arab concession and 60% in another concession code named ‘Egypt Project II’.

Burg Al-Arab, operated by Gharib, is presently on the low end of its production curve. Current output of 500 bpd is expected to rise to 12,000 bpd within three years on estimated reserves of between 10 and 45 million barrels.
Egypt Project II* is an existing oil discovery. It is expected to come onstream with a flow of about 500 bpd during 2007. Expectations are for production of 17,000 bpd within about two years. Estimated reserves are between 8 and 20 million barrels with further prospects that could yield up to 50 million barrels in reserves.

Yemen: With this country now firmly established as an important mid-level producer, the Company is engaged in two onshore projects: oil exploration in Block 82 and Block 83 in the Sir Sayun Basin, and a Technical Study in the Alif Fields.

The Company holds a 25% interest in Blocks 82 and 83** , both of which are operated by Medco. First production is expected in about four years, peaking at just below 25,000 bpd on recoverable reserves of about 60 million barrels.

The Alif Fields Technical Study covers the first phase of a three-phase full field development study and is an important showcase for the Company’s technical skills, particularly in small, complex fields.

Cambodia: With a 27% oil exploration interest in the Khmer Basin offshore Block E, this venture represents the Company’s first move beyond the Middle East and its first shallow water project. Working with Medco, an operator familiar with the area and with whom the Company works elsewhere, this interest is expected to be producing early next decade, peaking at about 16,000 bpd.

Russia: Operated by Concorde Oil and Gas of the UK, this production and development interest is presently extracting 2,000bpd and is expected to peak at about 13,000 bpd in 2009. The asset has certified reserves of 22 million barrels of oil with additional prospects of a further 11 million barrels. This interest provides an important entrée into the rapidly expanding Russian oil and gas industry, where small niche players who can produce safely and at low cost from small and mature fields, are increasingly important.

Country	Location of Interest	Main Activity	Partici-pation	Production , bpd	Operator
Producing Properties
Oman	Karim Small Fields	Production	15.0%	13,000	Medco
Egypt	Burg Al-Arab	Production	50.0%	400	Gharib
Russia	Luszkoye Block, Timan Pechora	Development	36.6%	2,000	Concorde
Exploration, Development and Other Interests
Egypt	Egypt Project II	Exploration/ Development	60.0%	N/A	Dover
Cambodia	Block E, Khmer Basin, offshore	Exploration	27.0%	By 2012	Medco
Yemen	Block 82 & 83, Sir Sayan Basin	Exploration	25.0%	By 2011	Medco
Yemen	Alif Fields, Marib – Al-Jawf Basin	Technical Study	N/A	N/A	SEPOC

Note: Current production represents average daily figures for the first quarter 2007. Dates by which current exploration properties are expected to provide first production are conservative and based on the best currentlyavailable information but cannot be guaranteed given the inherent technical and other uncertainties in the industry.

* - Contingent to Government Approval