Privately held Kuwait Energy Co. (KEC) is on track to go public and quintuple its oil production from its fields around the world by the end of next year, Chief Executive Sara Akbar said.
Akbar, known in some energy circles for her role fighting well fires after the first Gulf War, said that she expects KEC to lift output to 50,000 barrels of oil equivalent per day from about 10,000 bpd at the end of 2008, the Saudi English-language daily (Arab News) reported on Saturday.
The company, formed in August 2005, expects to list within the same time frame. "We’re looking at London and Kuwait exchanges. A dual listing is an option," said Akbar. Akbar said KEC, which posted net profits of $ 30 million in 2008 from $ 18 million 2007, would likely shun US exchanges because of onerous US reporting requirements. "Why would you want to subject any company to excessive regulation," she said.
The company’s strategy is focused on development of smaller fields, especially in the Middle East, where it can use its regional expertise and where many fields needing enhanced recovery methods are overlooked by large state-run firms. "A lot of fields are really aging and they don’t have time for the attention needed," Akbar said. On Thursday, state-run Kuwait Oil Co invited interest from contractors for services to enhance oil recovery, part of the country’s plans to boost output potential.
KEC has projects in Oman, Yemen, Egypt, Russia, Ukraine, Latvia, Pakistan and Cambodia.In 2007, KEC signed a memorandum of understanding to develop several projects in Iraq, including developing the small Siba gas field.
Last week, Iraq's oil ministry removed the Siba gas field from the list of fields to be offered in a second bidding round. The first round produced just one deal out of eight fields on offer, the large Rumaila field to BP and China National Petroleum Corp.
Akbar said it was difficult for the Iraqi government and oil companies to agree on terms for oil field development in the war-torn nation, still roiled by instability.
"Iraqis need to be more flexible. Eventually they will get there," she added.
Last August, KEC signed a partnership agreement with the Somali government and Indonesia's PT Medco Energi Internasional Tbk to set up a state oil firm in Somalia.
But a bid round to open up acreage to international companies set for 2010 has been delayed by ongoing turmoil in the East African country, Akbar said. (Reuters, QNA) Global Arab Network
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