Kuwait Annual Review 2006
KEC in Oman oilfield deal
More this month on: Kuwait Annual Review 2006
Surplus likely to continue
Dhaka in fuel import
Wait not over yet
Top quality offered
Petchem success
Unit deal awarded
Zamil awarded deal
The human element
Japan firm in deal
Shaw wins pipe coating order
17 firms invited by KOC
Project revs up
Boost for refining
Diverse activities
Seeking new horizons
Sinopec revamp on
In the beginning
Air pact signed
India firm eyes push
Seeking expansions in overseas markets
Education programme is a success
Foreign firms to be invited
Priority for project
$40bn oil push
The birth of an oil giant
Quality gets top priority at APC
Profit joy for Kufpec
KEC in Oman accord
Kuwait Energy Company (KEC) is signing a service agreement for a major oilfield in Sultanate of Oman in partnership with an Asian energy firm.
KEC chief executive officer Sara Akbar said that the company has formed a new firm with its operating partner Medco Energi Internasional Tbk of Indonesia to manage the Karim field located at the southern Nimr-Karim area of Oman.
The new company, Medco LLC (under formation) will enter into a service contract with Petroleum Development Oman (PDO) for the development of a cluster of 18 fields in the Nimr-Karim area of south of Oman, that produce more than 9,000 barrels of oil per day.
Medco LLC will operate with a non-operating partner; Oman Oil Company (OOC), a commercial company 100 per cent owned by the Government of the Sultanate of Oman, as an investment vehicle both inside and outside Oman, to diversify the Omani economy and generate investment.
Akbar revealed the term of the service contract is 10 years, but extendable. "This contract is the first secured transaction, out of several transactions that are currently under negotiations, for the newly established KEC."
She said that the partners in the project have commenced the steps necessary to achieve a takeover of the operations from PDO.
"Once the new company is fully staffed and other preconditions satisfied, PDO will handover the fields to Medco, which is expected to occur in May, 2006,' Akbar said.
She said, "KEC is working with Medco seeking opportunities for further partnerships in the Middle East."
Medco Energi International Tbk is a publicly listed energy company in Indonesia, with business involvement in oil and gas exploration and production, oil and gas drilling services, methanol production, LPG production and power generation.
It has operations in Libya, the Gulf of Mexico in the United States and throughout Indonesia.
KEC is an exploration and production (E&P) company established in Kuwait in August 2005, with an authorised capital of KD100 million.
The company is currently raising its paid-up capital to KD50 million. Global Investment House 'Global' leads the private placement for KEC.
KEC plans to acquire, explore, develop and manage existing and producing oil and gas properties.
KEC's focus is to profit from the economically and technically sound oil and gas properties through joint ventures with selected partners.