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Oil & Gas

Egypt cuts energy deal with Kuwait Energy amid strains with Saudis

Posted: November 4, 2016 at 2:23 pm   /   by   /   comments (0)

kecEgypt, looking elsewhere to fill its energy needs amid a row with Saudi Arabia, signed an agreement with a Kuwaiti firm that will give Cairo a 20 percent stake in an Iraqi oil field.

Kuwait Energy Plc signed an agreement with Egypt General Petroleum Corporation (EGPC) for a 20 percent participating interest for the Siba Field in Iraq, the company said in an emailed statement on October 26.

Egypt-Saudi relations hit a snag last month after Egypt voted in a UN Security Council session to support Russia’s draft resolution concerning the situation in Syria.

Soon after, Saudi Aramco informed EGPC that Aramco was suspending exports to Egypt for the month of October.

The agreement with Kuwait Energy, signed in Egypt on Oct. 24, remained subject to Iraqi regulatory approval.

The Siba deal marks the second partnership between Kuwait Energy and EGPC in southern Iraq. EGPC became a partner last year in the Block 9 concession operated by the Kuwaiti firm.

Kuwait Energy was awarded a 20-year gas development and production service contract for the Siba Field in 2011, receiving operatorship and 45 percent revenue interest.

(Source: World Tribune)

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