Kuwait oil firm sells stake in Egypt concession

Kuwait Energy Company says it has sold 22% stake in Abu Sennan concession to Australian firm
Kuwait oil firm sells stake in Egypt concession
oil rig, oil field, oil, energy, GCC energy, GCC oil, black gold
By Andy Sambidge
Sat 23 Apr 2011 02:08 PM

Kuwait Energy Company said on Saturday that it had reduced its stake in the Abu Sennan concession in Egypt from 72 percent to 50 percent.

The independent oil and gas exploration and production company said it sold the 22 percent stake to Australian company, Beach Energy Limited.

With the sale now concluded, Kuwait Energy said it continues to hold the majority interest and operatorship in the concession.

In a statement, the company added that the partial divestment will enable its capital expenditure to be more aligned with its target ratio of 80:20 between producing/developing assets and exploration assets.

The transaction was initially announced in August 2010, with the signing of a sale and purchase agreement (SPA), and was finalised this week after completing the standard governmental approval processes.

Kuwait Energy said it has also signed an SPA with Beach Energy Limited for the sale of a 15 percent stake in the non-operated Mesaha exploration concession, also in Egypt.

The Mesaha transaction is currently passing through the governmental approval process and is expected to conclude in the coming months.

Kuwait Energy's current production is 14,000 barrels of oil equivalent per day.

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