Environmental & Social Review Summary
Project Number
28068
Company Name
KUWAIT ENERGY COMPANY KSCC
Date ESRS Disclosed
May 19, 2009
Country
Middle East, Pakistan, and Afg Region
Region
Middle East
Last Updated Date
Nov 30, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jul 6, 2009
Signed : Sep 17, 2009
Invested : Oct 29, 2009
Sector
Oil and Gas Production (Includes Development)
Industry
Metals and Mining
Department
Gbl Infrastructure & Natural Resources
Project Description
KEC, a privately-owned Kuwaiti oil and gas exploration and production company, was founded in 2005 by former employees of Kuwait Oil Company (Kuwait’s national oil company). KEC has working interests in nine producing and twelve exploration assets in the Middle East/North Africa (“MENA”), Ukraine, Russia and Southeast Asia.
IFC is proposing to provide financing to KEC to:
- finance the development of its recently acquired producing and development assets in Egypt and Yemen; and
- accelerate exploration in Egypt and Yemen.
KEC’s assets in Egypt were mainly acquired in 2008 through various acquisitions and consist of one producing asset where KEC is operator, two other producing assets where KEC is not operator and two exploration blocks one of which is operated by KEC:
- Area A comprising four production areas and two exploration areas, onshore along the coast of the Gulf of Suez: operated by KEC. Current production c. 4,000 boepd;
- Burg El-Arab (“BEA”) in the Western Desert: in production and operated by Gharib Oil, a local Egyptian oil company. Current production c. 300 boepd;
- East Ras Qattara (“ERQ”) in the Western Desert: in production and operated by Sipetrol (Chile). Current production c. 5,000 boepd;
Abu Sennan in the Western Desert: exploration block with KEC operating interest;
- Mesaha (Block 6) in Upper Egypt is a frontier exploration area close to the border with Sudan: IFC’s client Melrose Resources is the operator of this exploration block.
Export of oil production is through existing pipeline infrastructure to terminals in Egypt.
KEC has not started field activities as operator in Yemen. Most of the assets were acquired in 2008 and include one non-operated producing asset and six exploration blocks, and KEC is the operating partner in three of these exploration blocks:
- Block 43 (Nabrajah): in production and operated by DNO (Norway). Current production c. 4,500 boepd. Oil export is through existing pipeline infrastructure;
- Block 49 (Al Maber): an exploration block with CCC Oil and Gas Company (Greece) as the operating partner;
- Block 15 (Al Mukalla): an offshore exploration block in shallow to deep offshore waters in the southern coast in Gulf of Aden operated by KEC;
- Block 35 (Al Hood): an exploration block with KEC as the operating partner;
- Block 74: an exploration block with KEC as the operating partner;
- Block 82: an exploration block with Medco Energi (Indonesia) as the operating partner;
- Block 83: an exploration block with Medco Energi as the operating partner.
IFC is proposing to provide financing to KEC to:
- finance the development of its recently acquired producing and development assets in Egypt and Yemen; and
- accelerate exploration in Egypt and Yemen.
KEC’s assets in Egypt were mainly acquired in 2008 through various acquisitions and consist of one producing asset where KEC is operator, two other producing assets where KEC is not operator and two exploration blocks one of which is operated by KEC:
- Area A comprising four production areas and two exploration areas, onshore along the coast of the Gulf of Suez: operated by KEC. Current production c. 4,000 boepd;
- Burg El-Arab (“BEA”) in the Western Desert: in production and operated by Gharib Oil, a local Egyptian oil company. Current production c. 300 boepd;
- East Ras Qattara (“ERQ”) in the Western Desert: in production and operated by Sipetrol (Chile). Current production c. 5,000 boepd;
Abu Sennan in the Western Desert: exploration block with KEC operating interest;
- Mesaha (Block 6) in Upper Egypt is a frontier exploration area close to the border with Sudan: IFC’s client Melrose Resources is the operator of this exploration block.
Export of oil production is through existing pipeline infrastructure to terminals in Egypt.
KEC has not started field activities as operator in Yemen. Most of the assets were acquired in 2008 and include one non-operated producing asset and six exploration blocks, and KEC is the operating partner in three of these exploration blocks:
- Block 43 (Nabrajah): in production and operated by DNO (Norway). Current production c. 4,500 boepd. Oil export is through existing pipeline infrastructure;
- Block 49 (Al Maber): an exploration block with CCC Oil and Gas Company (Greece) as the operating partner;
- Block 15 (Al Mukalla): an offshore exploration block in shallow to deep offshore waters in the southern coast in Gulf of Aden operated by KEC;
- Block 35 (Al Hood): an exploration block with KEC as the operating partner;
- Block 74: an exploration block with KEC as the operating partner;
- Block 82: an exploration block with Medco Energi (Indonesia) as the operating partner;
- Block 83: an exploration block with Medco Energi as the operating partner.
Overview of IFC's Scope of Review
The review of this project consisted of appraising technical, environmental, health, safety and social information submitted by Kuwait Energy Company K.S.C.C. (“KEC” or the “Company”), including: KEC’s Corporate Health, Safety, Environment and Social Responsibility (“HSESR”) Management System manual; corporate procedures prepared to support the Management System; and, the corporate human resources manual. Environmental baseline and impact assessment documentation for the operational fields in Egypt and the health safety and environmental plans and procedures in place for these operations were also reviewed, including the Environmental baseline survey for Area A: Addendum report; EGPC/EEAA environmental audit compliance for Area A – Egypt (Arabic); Egyptian General Petroleum Corporation (EGPC)/ Egyptian Environmental Affairs Agency (EEAA) environmental clearance for East Um El Yusr well in Area A – Egypt (Arabic); EGPC/EEAA environmental clearance for exploration well in Abu Sennan – Egypt (Arabic); EGPC/EEAA environmental clearance for Shukheir, Khalig, Yusr, West Zeir and Nubia wells in Area A – Egypt (Arabic); and radiation safety report for Area A.
IFC environmental specialists interacted with the Company’s corporate management team in Kuwait and operational managers responsible for Egypt and the Yemen on the project details, development plans and the environmental and social management of these proposed developments. In March 2009 an IFC environmental specialist visited KEC’s corporate head office in Kuwait City, KEC’s Egyptian operations office in Cairo and two operational fields in Egypt: Area A in the Gulf of Suez and Burg El-Arab in the Western Desert. An environmental specialist visit to the proposed field areas in Yemen and the KEC operations office in Sana’a is scheduled for early June 2009.
IFC environmental specialists interacted with the Company’s corporate management team in Kuwait and operational managers responsible for Egypt and the Yemen on the project details, development plans and the environmental and social management of these proposed developments. In March 2009 an IFC environmental specialist visited KEC’s corporate head office in Kuwait City, KEC’s Egyptian operations office in Cairo and two operational fields in Egypt: Area A in the Gulf of Suez and Burg El-Arab in the Western Desert. An environmental specialist visit to the proposed field areas in Yemen and the KEC operations office in Sana’a is scheduled for early June 2009.
