Dragon Oil, an international oil and gas exploration, development and production company, has confirmed the Iraqi Ministry of Oil and the Tender Committee signed the final service contract with a consortium of companies, including Dragon Oil, for the exploration, development and production for Block 9 in Iraq.
Dragon Oil bid jointly with Kuwait Energy in respect of Block 9. Kuwait Energy will be the operator in the service contract for Block 9, participating with a 70% contractor share, with Dragon Oil at 30%. Block 9 is located in the Basra province and covers an area of approx. 900km2. If Block 9 is found to be commercial during the five-year exploration period, during which time the consortium is eligible for a possible renewal for another two years twice, the consortium is automatically eligible for 20-year development and production phases, extendable by a further five years.
“I am pleased to announce the formal signing of the service contract for Block 9, which had previously been initialled on 16 July 2012,” said Dr Abdul Jaleel Al Khalifa, Chief Executive Officer.
“This step concludes the formal process following which the consortium now has the right and obligation to commence the exploration activities in the Block. We look forward to working with our partners in Iraq.”
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