Two more oil discoveries in Egypt for Kuwait Energy

Kuwait Energy makes two oil discoveries in Egypt's western desert.

Kuwait Energy, the private oil and gas producer, has again struck oil in Egypt.

The company yesterday announced two oil discoveries in its East Ras Qattara field in Egypt's western desert, where its Shebl East-1 well produced 1,500 barrels of oil per day (bpd) during tests, with another 600 bpd flowing from its Shebl-1 well.

The two exploratory wells were drilled to depths of more than 4,000 metres.

The new finds bring Kuwait Energy's total number of Egyptian oil and gas discoveries to 11.

"Eleven discoveries in Egypt over a three-year period is very pleasing and I am looking forward to the results of our other 2011 exploration wells," said Sara Akbar, the chief executive of the company. "We thank the Egyptian government and our partners for their ongoing support."

The recent exploration successes in Egypt of regional companies such as Kuwait Energy and Sharjah's Dana Gas, which have continued to pump oil and gas from the country despite the revolution that in February ousted the former president Hosni Mubarak, shows that Egypt is well on the way to getting its economy back on track.

The country's oil and gas sector is among its economic pillars, along with manufacturing, tourism and transportation through the Suez Canal.

Following the revolution, the Egyptian army installed a transitional government that included many of the country's top technocrats, according to Mrs Akbar.

Kuwait Energy holds interests in five Egyptian oil and gas concessions, including 49.5 per cent of East Ras Qattara. It also has oil and gas assets in Iraq, Yemen, Oman, Ukraine, Latvia, Russian and Pakistan.

The company's partner in East Ras Qattar is the Chilean producer Enap.

Kuwait Energy said it was currently producing 13,000 barrels of oil equivalent (boe) per day in total from reserves of 48.8 million boe.