Kuwaiti group will be paid by Iraqi government for oil produced at Block 9
The deal was signed between Kuwait Energy and Iraqs State Oil Marketing Company (Somo) and puts in place the mechanism by which Kuwait Energy will be paid for services in Block 9.
Crude cargoes allocated by Somo will be sold to compensate Kuwait Energy for the services in developing the oil assets at Block 9. The first allocation will be for Kuwait Energys oil production from the Faihaa-1 well between October 2015 and March 2016.
Kuwait Energy was awarded the Block 9 Exploration, development and production service contract (EDPSC) in southern Iraq as operator in 2013 and currently holds a 60 per cent participating interest. The other shareholders are Egyptian General Petroleum Corporation (EGPC) and Dubai-based Dragon Oil.
Kuwait Energy completed its first exploration well at Block 9 in March 2014 and commenced oil production in October 2015.
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