Kuwait Energy and Dragon Oil PLC have signed the final service contract to explore Iraq Block 9, a 900 sq km area in Basra Province along the border with Iran.
Kuwait Energy and Dragon Oil PLC have signed the final service contract to explore Iraq Block 9, a 900 sq km area in Basra Province along the border with Iran.
The contract signed with the Iraqi Ministry of Oil and the Tender Committee covers exploration, development, and production.
Kuwait Energy will be the operator with a 70% contractor share, and Dragon Oil has 30%. If Block 9 is found to be commercial during the 5-year exploratory period, during which time the companies are eligible for a possible renewal for another 2 years twice, they are automatically eligible for 20-year development and production phases extendable by a further 5 years.
