Kuwait Energy Company (KEC) announced today it’s signing a service agreement for a major oil field in Sultanate of Oman in partnership with an Asian energy firm.
Eng. Sara Akbar, KEC Chief Executive Officer, said that the company has formed a new company 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 L.L.C. (under formation) will enter into a service contract with Petroleum Development Oman L.L.C (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 (BOPD).
Medco L.L.C. will operate with a non-operating partner; Oman Oil Company S.A.O.C. (OOC), a commercial company 100% 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.
Eng. Akbar revealed that the Karim fields service contract with PDO will be signed at a ceremony on 21st March, 2006. The term of this Service Contract is 10 years, but extendable, she followed.
“This contract is the first secured transaction, out of several transactions that are currently under negotiations, for the newly established KEC.”
KEC CEO stated 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 LLC, which is expected to occur in May, 2006,” Akbar said.
She concluded by saying, “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 authorized 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 successful partners.