By John Lee.
Iraq has approved the deal under which Kuwait Energy would replace Turkey's state-owned Turkiye Petrolleri AO (TPAO) on the Block-9 exploration contract.
Abdul-Mahdy al-Ameedi, director of the ministry's contracts directorate, told Reuters:
"Kuwait Energy has acquired the stake of the Turkish company TPAO, and now it's holding 70 percent of the contract, and Dragon Oil PLC will hold 30 percent."
A consortium of companies, comprising Dragon Oil (30%), TPAO (30%) and Kuwait Energy (40% and operator), was awarded the exploration, development and production service contract for the 900-square-kilometer (350-square-mile) Block 9 in Iraq’s fourth bidding round in May. The bid for Block 9 was awarded on the basis of a remuneration fee of US$6.24 per barrel of oil equivalent.
As a result of the deteriorating relations with Turkey, caused by the closer links between Turkey and Iraqi Kurdistan, and not helped by the situation in Syria, Iraq asked Kuwait Energy last year to acquire TPAO's shares in the block.
The oil ministry plans to sign the final deal on 27th January.