Egypt cut energy deal with Kuwaiti firm amid strains with Saudis

by WorldTribune Staff, November 3, 2016

Egypt, 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.

Egypt will get a 20 percent interest in the Siba oil field.
Egypt will get a 20 percent interest in the Siba oil field.

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

Related: Egypt partners with Israel to boost fragile economy, Oct. 19, 2016

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.