Kuwait Energy Company Operations in Iraq

= History =

The contracts signed in 2011 with the Iraqi government marked the beginning of KEC's operations in Iraq.

= Activities and Contracts =

Siba and Mansuriya gas fields
In June 2011 the KEC announced that it had been awarded 20-year term gas development contracts for Siba and Mansuriya gas fields in Iraq's third post-war bidding round.

The KEC jointly bid with the Turkish Petroleum Corporation (TPAO) for both gas fields. KEC became the operator of Siba, with a 45% share (TPAO 30%; state-owned South Oil Company 25%). At Mansuriya, TPAO became the operator with a 37.5% majority share, (KEC 22.5%; Midland Oil Company 25%).

Kuwait Energy Chairman Dr Manssour Aboukhamseen commented on the deals: “We are excited to start today a long-term partnership with Iraq for the development of their natural gas resources and look forward to applying our experience and technology towards building gas production in Iraq that meets domestic needs and export opportunities. Kuwait Energy has been working towards obtaining such contracts for over three years, and today marks a significant milestone for Kuwait Energy.”

Block 9
In May 2012 KEC announced that the consortium it led in Iraq's fourth licensing round had been successful in acquiring exploration rights for "Block 9" in Basra. The other participants in the consortium were Turkish TPAO (30%) and Dubai-based Dragon Oil (30%), while KEC held an operating 40% stake. The accepted bid proposed a remuneration fee of $6.24 per barrel.

After the Iraqi government expelled TPAO from the Block 9 consortium in November 2012, KEC was asked to take over the shareholding, which increase its holding to 70%.

= References =