Sara Akbar, Kuwait Energy CEO
The Iraqi Ministry of Oil and Tender Committee and the Kuwait Energy-led consortium today initialed the exploration, development and production service contract for “block 9” located in the Basra province, the first step in a customary process before the Iraqi Council of Ministers and the consortium members sign the final contract, on a date to be announced later in the year.
Kuwait Energy Chief Executive Officer, Sara Akbar, said, “This is another great milestone in our relationship with Iraq that started in 2008. On behalf of Kuwait Energy and our partners, 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.”
In May 2012, the Kuwait Energy-led consortium successfully bid for “block 9” during Iraq’s fourth energy bidding round. The consortium includes the national oil company of Turkey, Turkiye Petrolleri Anonim Ortakligi (TPAO), and Dragon Oil, an independent international oil and gas exploration, development and production company.
Kuwait Energy will be the operator of the block with a 40% working interest, while TPAO and Dragon Oil will each hold a 30% working interest.
According to the contract, the consortium has a five-year exploration phase to determine the oil prospects of “block 9”, which spans over a 900 km² area in the Basra province. If “block 9” is found to be commercial during this phase, the consortium may apply to the Iraqi government to continue developing the block over a 20-year development period.
This is the third block awarded to Kuwait Energy in Iraq. In Iraq’s third bid round held in October 2010, Kuwait Energy was awarded two 20-year development contracts of the Siba and Mansuriya gas fields. Kuwait Energy is the operator of the Siba gas field with a 60% working interest, and holds a 30% working interest in Mansuriya gas field which is operated by TPAO.