Kuwait Energy awarded development contracts for Siba and Mansuriya gas fields in Iraq, 20 October 2010

Kuwait Energy Company, one of the fastest growing independent oil and gas companies in the Middle East, announced today that it has been awarded 20 year term gas development contracts for Siba and Mansuriya gas fields in Iraq’s third bidding round. Siba field is located in Basra Governorate and Mansuriya field in Diyala province.

Kuwait Energy jointly bid with the Turkish Petroleum Corporation (TPAO), the national oil company of Turkey for both gas fields. Kuwait Energy will be the operator of Siba, participating with a 60% contractor share and TPAO participating with 40%. TPAO will be the operator of Mansuriya, participating with a 50% contractor share, Kuwait Energy 30% and Korea Gas Corporation (KOGAS) 20%.

The bids were judged on a remuneration fee in US dollars per barrel of oil equivalent (boe) and a plateau production target expressed in millions of standard cubic feet per day (MMSCFD) of dry gas. The successful remuneration fee for Siba was USD7.50 per boe with a plateau production target of 100 MMSCFD. For Mansuriya the successful bid was USD7.00 per boe with a plateau production target of 320 MMSCFD.

Kuwait Energy Chairman and Managing Director, Dr. Manssour Aboukhamseen, said: “We are excited to start today a long-term partnership with Iraq for the development of their natural gas resources and look forward to applying our experience and technology towards building gas production in Iraq that meets domestic needs and export opportunities. Kuwait Energy has been working towards obtaining such contracts for over three years, and today marks a significant milestone for Kuwait Energy.”

Thirteen companies participated in the bidding round for the three gas fields, Akkas, Siba and Mansuriya. The fields together have estimated reserves in excess of 11 trillion cubic feet of gas.