Kuwait Energy led a consortium of players to win Block 9 in Iraq's fourth post-war energy licensing auction on Wednesday. The consortium consists of Kuwait Energy with a 40 percent share and Turkish energy giant TPAO and the London-listed Dragon each with 30 percent.
The award to search for oil and gas in Block 9 of Basra, Iraq, represents one of the 12 blocks being offered by the Iraqi government.
Iraqi Oil Minister Abdul-Karim Elaibi said in an opening speech that the ministry will "spare no efforts to help and support the companies as partners to achieve the common interests."
Elaibi also said exploration of the 12 blocks available will add to Iraq's oil reserves and promote the development of Iraq's natural gas industry.
After years of inner turmoil, violence, war, and neglect, the Iraqi government is seeking to develop their energy ministry, as Iraq sits on one of the world's largest oil reserve and oil revenues make up almost 95 percent of the country's budget.
"If Block 9 is found to be commercial during the five-year exploration period, the consortium may make an application to the Iraqi government to develop the block over a 20-year development period," Dragon said of the awarded energy license.
The company added, "The consortium's bid for Block 9 was awarded on the basis of a remuneration fee of $6.24 per barrel of oil equivalent. Compared to the previous bid rounds in Iraq, there was no stipulated plateau production target for blocks awarded in this bid round."
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