Kuwait Energy signs contract with Iraq to start exploration of "Block 9" in Basra [Kuwait News Agency]

| KUWAIT, Jan 27 (KUNA) -- A consortium led by oil and gas exploration and production company Kuwait Energy and the Iraqi Ministry of Oil signed Sunday the final service contract for the company to conduct its role in Basra's "Block 9".

In a press statement, the company pointed out that "Block 9", which spans over an 866 sq/km area in the Basra province, was awarded to the consortium during Iraq's fourth bidding round in May 2012.

The contract was signed on behalf of the Iraqi Ministry of Oil by the Deputy General of South Oil Company, Mr. Faisal Wadi, and from Kuwait Energy by Chief Executive Officer, Ms. Sara Akbar.

The Kuwait Energy-led consortium for "Block 9" includes Dragon Oil, an independent international oil and gas exploration, development and production company.

Kuwait Energy will be the operator of the block with a 70 percent working interest, while Dragon Oil will hold the remainder 30 percent working interest.

"On behalf of Kuwait Energy and our partner, we look forward to continue participating in the development of Iraq's energy resources, and supporting the country's endeavors towards the development of its energy sector," Sara Akbar said. As per the contract terms, potential hydrocarbons prospects will be assessed during the five-year exploration phase of the contract, eligible for a possible renewal for two years twice. In the case of a discovery, the Consortium will be automatically eligible for 20-year development and production phases, extendable by an additional five years.

This is the third block awarded to Kuwait Energy in Iraq. In Iraq's third energy bidding round that was held in October 2010, Kuwait Energy was awarded two 20-year development contracts for the Siba and Mansuriya gas fields. Kuwait Energy holds a 60 percent working interests Siba gas field, operated by Kuwait Energy, and a 30 percent working interest in the TPAO-operated Mansuriya gas field.

Kuwait Energy, one of the few independent oil and gas exploration and production companies operating in the Middle East, has been profitable since inception in 2005, and currently operates in Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan, Kuwait Energy's working interest proven and probable reserves at year end 2011 were 235.3 million barrels of oil equivalent and its current production has reached approximately 17,750 barrels of oil equivalent per day. (end) asj.smh.ibi KUNA 271741 Jan 13NNNN

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