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Soco International terminates merger talks with Kuwait Energy

EBR Staff Writer Published 06 March 2018

UK-based Soco International has scrapped its plans to merge with Kuwait Energy after failing to reach an agreement with the oil and gas firm on mutually acceptable transaction terms.

Soco had been in talks with Kuwait Energy for a possible merger since early January. The two parties did not disclose the financial aspects of the merger proposal.

Soco has exploration, development and production stakes in offshore Vietnam, which includes a stake of 30.5% in the Te Giac Trang Field, 25% in the Ca Ngu Vang field, and 70% in the Blocks 125 & 126.

In Congo and Angola, the company has exploration and appraisal interests.

Its subsidiary SOCO Exploration and Production own a 40.39% interest and is designated operator of each of the Lidongo, Viodo, Lideka and Loubana permit areas offshore the Republic of Congo. 

The proposed merger with Kuwait Energy was initiated by the company, as part of its move to strategically reshape its business and expand its portfolio. Soco indicated that it will continue to evaluate other opportunities following the failure to strike a deal with the Kuwaiti firm.

Kuwait Energy is engaged in exploration, appraisal, development and production of hydrocarbons in the Middle East and North Africa (MENA) region. Its portfolio is made up of ten exploration, development and production oil and gas across Egypt, Iraq, Oman and Yemen.

Currently, six of Kuwait Energy’s ten assets are into production. In 2017, the MENA oil and gas firm had achieved an average daily production of 26,819boepd while its audited 2P reserves as at year-end 2016 stood at 810mmboe.

Last month, Kuwait Energy made an oil discovery in the Area A concession in the Eastern Desert, Egypt after drilling the South Kheir-1X well. The company, which holds 70% stake in the block, is partnered by Petrogas, which owns the remaining stake.