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EGPC farms into southern Iraq block in Kuwait Energy deal

16th March 2015

Kuwait Energy and Egyptian General Petroleum Corporation (EGPC), the national oil company of Egypt, have jointly signed an agreement whereby EGPC has farmed in a 10 per cent participating interest in Block 9, Iraq licence

Kuwait Energy and Egyptian General Petroleum Corporation (EGPC), the national oil company of Egypt, have jointly signed an agreement whereby EGPC has farmed in a 10 per cent participating interest in Block 9, Iraq licence
Iraq well: Block 9 field is located in the Basra Governorate, in Southern Iraq. Source: Shutterstock

With this agreement, EGPC has become a partner with Dragon Oil Holdings Limited and Kuwait Energy, in the Block 9 licence, where Kuwait Energy is the operator.

“We are pleased to announce EGPC’s first international investment,” said Tarek El Molla, EGPC CEO. “The merit of this investment is its contribution to building an economic relationship between Iraq and Egypt. Block 9 has huge potentials of oil reserves and resources, which add significant value for Egypt. This partnership with Kuwait Energy comes as the fruit of the Strategic Alignment Agreement signed in 2011.”

Block 9 field is located in the Basra Governorate, in Southern Iraq. The signing ceremony was witnessed by H.E Eng. Sherif Ismail, minister of petroleum and mineral resources of the Arab Republic of Egypt, and H.E Kuwait’s ambassador to Egypt, Salem Al-Zamanan.

The Exploration, Development & Production Service Contract (EDPSC) pertaining to Block 9 was signed in January 2013 after the award in 2012.

The first discovery was made in September 2014 in the Mishrif formation resulting in a flow rate of circa 2,000 BOPD on 32/64 inch choke, and the second discovery followed shortly in December 2014 in the Yamama formation resulting in oil flow rates of circa 8,000 BOPD on 64/64 inch choke.

Sherif Ismail commented: “The partnership between EGPC and Kuwait Energy is a successful example of the public sector and the private sector coming together, each sector bringing in its share of knowledge, skills and strengths for the interest of the country.”

Kuwait Energy chairman, Manssour Aboukhamseen, stated: “Kuwait Energy has always believed and continues to believe that the oil and gas business is a solid bridge for developing and strengthening ties between nations. This agreement exemplifies fruitful cross-Arab cooperation, bringing together Egypt, Iraq and Kuwait for one common goal: the economic and social development of the region.”

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