By John Lee.
Egypt has finalised a farm-in at Iraq’s Block 9 area in Basra province on Wednesday.
Under the agreement, Kuwait Energy (KEC) will give up 10 percent of the concession, leaving it with a 60 percent share.
According to a report from Reuters, this is the first time that the state-owned Egyptian General Petroleum Corporation (EGPC) will search for oil outside its own borders.
Production at the first well in the block, Fayhaa 1, is expected to begin in October at 5,000 barrels per day (bpd), increasing to 150,000 bpd by 2020-21.
Block 9 was originally granted to KEC (40%), Türkiye Petrolleri Anonim Ortaklığı (TPAO, Turkish Petroleum) (30%), and Dragon Oil (30%), but the Iraqi government expelled TPOA, following which KEC took over the TPOA share.
(Source: Iraqi Ministry of Oil, Reuters)