A consortium led by Kuwait Energy has signed a contract with the Iraqi Ministry of Oil for the exploration, development and production of Basra’s ‘block 9’.
The block spans over an 866 sq kilometre area in the Basra province. It was awarded to the consortium during Iraq’s fourth bidding round in May 2012.
The contract was signed by Faisal Wadi, deputy general of South Oil Company on behalf of the Iraqi Ministry of Oil, and Sara Akbar, chief executive officer of Kuwait Energy.
Kuwait Energy holds a 70% working interest in the block as operator alongside Dragon Oil which will hold the remaining 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 five-year 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 interest Siba gas field, operated by Kuwait Energy, and a 30% working interest in the TPAO-operated Mansuriya gas field.
Kuwait Energy’s working interest proven and probable reserves at year end 2011 were 235.3 million barrels of oil equivalent and its current production has reached approximately 17,750 barrels of oil equivalent per day.
