Kuwait Energy signs Block 9 Export Oil Sales Agreement in Iraq
Date
4/10/2016 9:07:24 AM
(MENAFN- Kuwait News Agency (KUNA)) KUWAITApril 10 (KUNA) -- Kuwait Energy announced on Sunday the signing of Iraq's Block 9 Export Oil Sales Agreement.
The agreement was signed between a consortium led by Kuwait Energy and the State Oil Marketing Company (SOMO); SOMO is an Iraqi national company responsible for marketing Iraq's oil Kuwait Energy said in a statement.
It added that the agreement puts in place the mechanism by which Kuwait Energy will be paid for services in Block 9 Iraq.
The signing ceremony took place in SOMO's Baghdad Head Quarters and was attended by Majid Al-Hilfi representing SOMO Sara Akbar CEO Kuwait Energy Ibrahim Fathy Assistant Deputy CEO for Development and Reservoir Production Dept. Egyptian General Petroleum Corporation and Asri Mousa representing Dragon Oil Holdings Ltd from the partners side.
The Agreement with SOMO will enable allocation of crude cargoes to be sold in compensation for the services the consortium is rendering in Block-9. Kuwait Energy is expected to be allocated its first cargo of oil entitlement for Kuwait Energy's working interest share from Faihaa-1 well covering the production of oil from October 2015 to March 2016 "Today marks an important milestone in Kuwait Energy's history and its Iraq operations in particular as this Agreement will facilitate receiving revenue from our Iraq operations after 5 years of Kuwait Energy's work and investment in Iraq" said Sara Akbar. "It wouldn't have been possible if it wasn't for the excellent relationship and cooperation between the Consortium Iraq's Ministry of Oil and the South Oil Company which maintained focus and discipline allowing production startup from this important asset in one year from the discovery." In 2013 Kuwait Energy was awarded the Block 9 Exploration Development & Production Service Contract (EDPSC) in southern Iraq as operator and currently holds a 60% participating interest.
First exploration well in Block 9 was spud in March 2014 which led to significant oil discoveries in September and December of the same year. Oil production commenced from the Block in October 2015 only a year after the first discovery was made. Kuwait Energy is an independent oil and gas company actively engaged in the exploration appraisal development and production of hydrocarbons.
Kuwait Energy's MENA portfolio consists of 10 exploration development and production assets across Egypt Iraq Yemen and Oman of which it operates 7 assets.
2P working interest reserves are 671 mmboe as at 31 December 2014 and 2015 average daily working interest production was 25.0 kboepd.
With a main office in Kuwait Kuwait Energy has area offices in Cairo Sana'a Baghdad and Basra. (end) asj.nfm
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.