Kuwait Energy Co. and Dragon Oil PLC have secured a rig from Iraqi Drilling Co. to spud an exploratory well on Block 9 in Iraq’s Basra Province in this year’s last quarter.
The companies also chose vendors to perform an environmental impact assessment, environment base line survey, and de-mining activities.
The work commitment in the initial 5-year exploratory period includes de-mining, seismic acquisition and interpretation, and drilling one exploratory well. Block interests are Kuwait Energy operator with 70% contractor share and Dragon Oil 30%.
Block terms are a remuneration fee of $6.24/bbl of oil equivalent with no stipulated plateau production target. During the first 5 years the companies are eligible to renew the block for 2 years twice, and they are entitled to 20-year development and production phases extendable by 5 years.