Kuwait Energy Company, a Kuwait based independent oil and gas exploration and production company announced it has sold a 20% participation interest from its contractor’s share in the Burg El Arab concession in Egypt to Canadian oil and gas company East West Petroleum Corporation.
Kuwait Energy will remain the operator of the Burg El Arab concession with a 55% interest from the contractor’s share in addition to the operatorship. Gharib Oil Fields, partner in Burg El Arab, will retain its 25% participation interest.
The 72 square kilometre concession lies in the Wester Desert region of Egypt.
Kuwait Energy Company deputy chairman and CEO, Sara Akbar, said: “The agreement enables Kuwait Energy to align its portfolio with its long-term growth plans. We remain the operator of the concession and are glad to begin our joint venture with East West Petroleum to realise the full potential of the asset.”
Calgary-based East West Petroleum Corporation president and CEO, Greg Renwick, said: “East West Petroleum is extremely pleased to have entered an agreement with a leading Middle Eastern private-sector firm such as Kuwait Energy Company. We look forward to working closely with Kuwait Energy Company to bring unconventional hydrocarbon studies and technologies to the partnership to enhance the value of the Burg El Arab Concession Agreement Area.”
The Burg El Arab concession is situated in the prolific Western Desert area of Egypt.
Kuwait Energy currently operates in Egypt, Yemen, Oman, Ukraine, Latvia, Russia, and Pakistan and had proven and probable reserves of 51.2 million barrels of oil equivalent at the end of 2009 with a current production of about 14,000 barrels of oil equivalent per day.
The company is targeting an initial public offering (IPO) in the London and/or Kuwait stock markets within the next nine months according to the company.
East West Petroleum Corporation is an exploration and production company specialised in the development of unconventional and conventional petroleum resources globally.
