Kuwait and Iraq ink Basra oil deal
Kuwait and Iraq have signed an oil exploration deal for the 'Block 9' area of Basra
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A Kuwait Energy-led consortium and the Iraqi Ministry of Oil yesterday signed the final service contract for the exploration, development and production of Basra’s “block 9”.
“Block 9”, which spans over an 866 square kilometer area in the Basra province, was awarded to the consortium during Iraq’s fourth bidding round in May 2012.The contract was signed on behalf of the Iraqi Ministry of Oil by the Deputy General of South Oil Company, Faisal Wadi, and from Kuwait Energy by Chief Executive Officer, Sara Akbar.
The Kuwait Energy-led consortium for “block 9” includes Dragon Oil, an independent international oil and gas exploration, development and production company. Kuwait Energy will be the operator of the block with a 70% working interest, while Dragon Oil will hold the remainder 30% working interest.
Sara Akbar said, “On behalf of Kuwait Energy and our partner, we look forward to continue participating in the development of Iraq’s energy resources, and supporting the country’s endeavors towards the development of its energy sector.”
As per the contract terms, potential hydrocarbons prospects will be assessed during the fiveyear exploration phase of the contract, eligible for a possible renewal for two years twice. In the case of a discovery, the Consortium will be automatically eligible for 20- year development and production phases, extendable by an additional five years.
This is the third block awarded to Kuwait Energy in Iraq. In Iraq’s third energy bidding round that was held in October 2010, Kuwait Energy was awarded two 20-year development contracts for the Siba and Mansuriya gas fields.
Kuwait Energy holds a 60% working interests Siba gas field, operated by Kuwait Energy, and a 30% working interest in the TPAOoperated Mansuriya gas field
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