Iraq inks Block 9 deal

AP/Scanpix

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Eoin O'Cinneide

 28 January 2013 08:23 GMT

Iraq has firmed up the contract to hand control of an oil block in the country to Kuwait Energy and Dragon Oil.

The final service agreement covering Block 9 in Basra province was signed by the Ministry of Oil and the parties on Sunday.

Reports indicated earlier this month that Kuwait Energy was due to get operatorship of the block after the Iraqi cabinet decided to expel Turkey’s TPAO after it developed closer commercial ties with the Kurdistan Regional Government in northern Iraq.

Kuwait Energy will hold 70% of the block with London-listed Dragon getting the remainder.

If the block is found to be commercial in the five-year exploration period – extendable by two years – then the pair will automatically qualify…

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