Kuwait Energy plc announces the signing of the Farm-Out Agreement (FOA) of a 20% participating interest from Kuwait Energy’s share in Siba, to the Egyptian General Petroleum Corporation (“EGPC”), which was signed in Egypt on Monday 24 October 2016.

The signing ceremony was attended byTarek Al Molla, the Egyptian Minister of Petroleum, Tarek Al Hadidy, the CEO of EGPC and Sara Akbar, the CEO of Kuwait Energy.

The assignment of 20% participating interest to EGPC remains subject to Iraqi and pre-emption approvals. Once these are in place, EGPC will become a partner with Kuwait Energy for the second time in Iraq. In October 2015, EGPC became a partner in Iraq’s Block 9 concession, where Kuwait Energy is the operator.

Sara Akbar, CEO of Kuwait Energy said:
“This is a great moment for Kuwait Energy and EGPC. Kuwait Energy is thrilled to be well-positioned to bridge economic ties in the region and create value and opportunities for everyone included. We highly value our unique partnership with EGPC.”

Tarek Al Molla, Egyptian Minister of Petroleum, and Tarek Al Hadidy, CEO of EGPC, jointly stated:
“EGPC’s participation in Iraq’s Siba field is yet another reflection of our outward strategic relationship with Kuwait Energy. Our increased investments in Iraq further solidifies the economic ties between Egypt, Kuwait, Iraq and the wider region”.

Kuwait Energy was awarded the 20 year Gas Development and Production Service Contract (GDPSC) for the Siba field in June 2011.Currently, the Company is finalising the construction of the Siba gas plant to begin production in 2017.

Upon completion of this transaction, Kuwait Energy will hold a 40% share in the Siba concession, while TPAO will continue to hold 40% and EGPC will hold 20%.