Kuwait Energy group wins Block 9 after Iraqi bidding round

It has been announced that a group of investors led by Kuwait Energy has won Block 9 in Iraq’s latest oil and gas bidding round. Block 9 is approximately 900 km2 and is situated in the south of the country near Basra and the Iranian border.

Kuwait Energy has a 40% stake in the new block Dragon Oil and TPAO (the other members of the consortium) have stakes of 30% each. According to statement released by Dragon, “If Block 9 is found to be commercial during the five-year exploration period, the consortium may make an application to Iraqi government to develop the block over a 20-year development period.

“The consortium’s bid for Block 9 was awarded on the basis of a remuneration fee of US$ 6.24 per bbl of oil equivalent. Compared to the previous bid rounds in Iraq, there was no stipulated plateau production target for blocks awarded in this bid round.”

There have been questions regarding the popularity of the bidding round, with many citing continuing political instability in the region, few financial incentives and relatively harsh contracts.

Abdul Kareem Luaibi, Iraqi Oil Minister, said, “We aim in this bidding round to also boost Iraq’s crude reserves and this will give a positive signal about Iraq as an oil producing and exporting country.”

Iraq is in the process of rapidly rebuilding its battered oil infrastructure after sanctions and war have taken a heavy toll.

Edited from various sources by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/30052012/kuwait_energy_group_wins_block_9_after_iraqi_licensing_round/