By Robert Gibbons
Kuwaiti firm plans to quintuple its oil production from its fields around the world by 2010-end.
Privately held Kuwait Energy Co 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 told Reuters in an interview.
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 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, who bills herself as one of just a handful of Arab female CEOs in the Middle East.
Akbar said KEC, which posted net profits of $30 million in 2008 from $18m 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.
Elsewhere, KEC intends to divest by the end of 2009 its one exploration license it holds with Medco in Cambodia.
As for oil prices, Akbar said she was encouraged by the recent data showing Chinese second-quarter growth accelerating to 7.9 percent.
"As long as the Far East and China are still growing at those rates, the fundamentals should show the price of oil in the range of $60 to $70 is sustainable."
Akbar previously worked for Kuwait Foreign Petroleum Exploration Co and Kuwait Oil Co and gained much attention for her role in fighting oil well fires after the first Gulf War.
"I remember we had a birthday party for Red Adair, his 76th, while he was in Kuwait fighting the fires in 1991. He was a legend. But when you have 700 wells on fire, you have to be heroic. You have to do something." (Reuters)
Kuwait oil company was built up by British and Americans (BP &Gulf) for years till the invassion of Kuwaities, things was going well , untill the promotions of Kuwaiti staff to high posissions created frustration among the staff, ( IT IS NOT WHAT DO YOU KNOW, BUT WHOM DO YOU KNOW) THIS WAS THE DISTROYING POLICY FOR THE COMPANY. Kuwait produced 4 million b/day on the 70s . now dreaming to go up to 3/4 million B/Day in few years. people who know nothing about OIL and how it comes out from ground and ends where, they discuss this business and objects because they did not get pribed, I would like to say an advice to the oil minister Shaik Abdullah,,,Repair the present oil wells they are full of pure oil and Gas , but how ? This is other long story and God pless Kuwait and you all.