Iraqs Ministry of Oil has initialled a contract with a consortium headed by Kuwait Energy for exploration, development and production rights over Block 9
According to the contract, exploration of the block – a 900 sq km area of Iraq’s Basra province – will be led by Kuwait Energy, who will have a 40 per cent working interest in the site, which it will share with Turkey’s national oil company Turkiye Petrolleri Anonim Ortakligi (TPAO) and Dragon Oil, who will both hold a 30 per cent interest.
Currently the agreement grants the companies a five-year working phase in which to determine the block’s prospects. Kuwait Energy said in a statement, however, that if found to contain commercial value then the consortium could, in future, apply for more permanent rights over the area.
Kuwait Energy chief executive officer Sara Akbar announced, "This is another great milestone in our relationship with Iraq that started in 2008.
“We look forward to continuing to participate in the development of Iraq's energy resources, and supporting the country's endeavours towards the development of its energy sector."
The contract will be in line with Iraq’s plan to boost foreign investment in the development of its oil resources.
A similar deal is currently underway with Pakistan Petroleum, which granted the company the right to explore eastern Iraq’s 6,000 sq km Block 8, while an anticipated deal is on the cards for a consortium led by Russian Lukoil in Block 10.
Over the next few years Iraq is expected to become the world’s biggest source of new oil supplies, according to Reuters.
