(MENAFN) Kuwait Energy's CEO, Ms Sara Akbar, stated that a consortium led by the Kuwaiti firm has inked an oil exploration agreement with the Iraqi Ministry of Oil, reported Arab Times.
Akbar said that Baghdad awarded Basra's "block 9" contract to the consortium, which comprises UAE's Dragon Oil, during Iraq's fourth bidding round in May 2012, becoming the third block granted for Kuwait Energy in the neighboring country.
The Kuwaiti firm will be the operator of the block and will hold a 70-percent working interest, whereas Dragon Oil will hold the remaining 30 percent.
Under the contract terms, possible hydrocarbons prospects will be evaluated during the 5-year exploration phase of the contract, with a possible renewal for 2 years twice.
If a discovery is made, the consortium will be eligible for 20-year development and production phases, extendable by further 5 years.
It is worth noting that Kuwait Energy was granted 2 twenty-year development contracts in Iraq's third energy bidding round held in October 2010 for the Siba and Mansuriya gas fields.
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