Kuwait Energy announced, on Sunday, the signing of Iraq's Block 9 Export Oil Sales Agreement. The agreement was signed between a consortium led by Kuwait Energy and the State Oil Marketing Company (SOMO); SOMO is an Iraqi national company responsible for marketing Iraq’s oil, Kuwait Energy said in a statement.
It added that the agreement puts in place the mechanism by which Kuwait Energy will be paid for services in Block 9, Iraq. The signing ceremony took place in SOMO's Baghdad Head Quarters and was attended by 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 and Asri Mousa, representing Dragon Oil Holdings Ltd from the partners side.
The Agreement with SOMO will enable allocation of crude cargoes to be sold in compensation for the services the consortium is rendering in Block-9. Kuwait Energy is expected to be allocated its first cargo of oil entitlement for Kuwait EnergyØ¢’s working interest share from Faihaa-1 well covering the production of oil from October 2015 to March 2016 "Today marks an important milestone in Kuwait Energy's history and its Iraq operations 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," said Sara Akbar.
"It wouldn’t have been possible if it wasn’t for the excellent relationship and cooperation between the Consortium, IraqØ¢’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 discovery." In 2013, Kuwait Energy was awarded the Block 9 Exploration, Development & Production Service Contract (EDPSC) in southern Iraq as operator and currently holds a 60% participating interest.
First exploration well in Block 9 was spud in March 2014 which led to significant oil discoveries in September and December of the same year. Oil production commenced from the Block in October 2015, only a year after the first discovery was made. Kuwait Energy is an independent oil and gas company actively engaged in the exploration, appraisal, development and production of hydrocarbons.
Kuwait EnergyØ¢’s MENA portfolio consists of 10 exploration, development and production assets across Egypt, Iraq, Yemen and Oman of which it operates 7 assets.
2P working interest reserves are 671 mmboe as at 31 December 2014 and 2015 average daily working interest production was 25.0 kboepd. With a main office in Kuwait, Kuwait Energy has area offices in Cairo, SanaØ¢’a, Baghdad and Basra.