Kuwait Energy has received its first cargo allocation payment from the Iraqi government after starting production at its Block 9 oil concession in the Basra province.
The firm signed an export sales agreement with State Oil Marketing Company (Somo) in March, in which it receives payment in oil exports in exchange for its share of production.
The first cargo allocation, covering Kuwait Energys share of production until June, is worth $11.8m. This covers the companys 315,000 barrels of oil from the total cargo of 525,000 barrels.
The remaining quantity is split between the Block 9 minority shareholders UAE-based Dragon Oil and Egyptian General Petroleum Corporation (EGPC).
Today represents a historical milestone in the life of Kuwait Energy as this marks our first payment from Iraq, said Sara Akbar, CEO of Kuwait Energy.
Kuwait Energy holds a 60 per cent participating interest and is the operator of the Block 9 concession, while Dragon Oil holds 30 per cent and EGPC holds 10 per cent.
Kuwait Energy is also the operator the Siba gas field in the Basra province and holds a stake in the Mansuriya gas field concession in the Diyala province.