An agreement between Kuwait Energy plc and the government owned, Iraq State Oil Marketing Organization (SOMO) means Iraq's Block 9 project will be developed as outlined in the Export Oil Sales Agreement signed between the two countries-- which also indicates Kuwait Energy will be paid as an operator. The following members of both parties attended the signing ceremony in Baghdad at SOMO headquarters, 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 (EGPC) and Asri Mousa, representing Dragon Oil Holdings Ltd.
Outlined in the agreement is the stipulation that SOMO will allocate crude cargoes in order to compensate for operational fees for Block 9 and Kuwait Energy will also receive its share of the interest from Faihaa-1 well for the period between October 2015 through March 2016.
Sara Akbar, Kuwait Energy CEO, stated,“today marks an important milestone in Kuwait Energy’s history and its Iraq operBlock dations 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. 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 discover."
Kuwait Energy holds a 60% share of Block 9 exploration in southern Iraq which it was awarded in 2013 through the Development & Production Service Contract (EDPSC). It was in March 2014 that exploration of Block 9 commenced,resulting in vast discoveries; this was immediately followed by oil production in 2015 (October) after the initial discovery.