Dragon Oil, Partner Ink Final Iraq Exploration Deal

Dragon Oil has said that the Iraqi Ministry of Oil and the Tender Committee signed the final service contract with a consortium of companies, including Dragon Oil, for the exploration, development and production for Block 9 in Iraq.

The compnay bid jointly with Kuwait Energy for the block. Kuwait Energy will be the operator with a 70% stake, with Dragon Oil having a 30% interest.

Block 9 is located in the Basra province and covers an area of approx. 900 sq. km. “If Block 9 is found to be commercial during the five-year exploration period, during which time the consortium is eligible for a possible renewal for another two years twice, the consortium is automatically eligible for 20-year development and production phases, extendable by a further five years” a statement by Dragon Oil said.