Iraq has awarded a group led by Kuwait Energy an exploration, development, and production contract for Block 9 in the country’s fourth bid round.
Kuwait Energy will operate Block 9 in Basrah Province with a 40% contractor share. Dragon Oil PLC and Turkish Petroleum Corp. will have 30% each.
If the block is found to be commercial during the 5-year exploration period, the group may apply to the Iraqi government to develop the block over a 20-year development period.
The consortium’s bid was awarded on the basis of a remuneration fee of $6.24/bbl of oil equivalent. Compared with the previous bid rounds in Iraq, there was no stipulated plateau production target for blocks awarded in this bid round.