Gulf Oil and Gas accountACCOUNT

Kuwait Energy Signs Block 9 Farm-out Agreement

Source: www.gulfoilandgas.com 2/12/2018, Location: Middle East

Share |
Kuwait Energy plc signed Block 9, Iraq Farm-out Agreement with Dragon Oil (a wholly-owned subsidiary of Emirates National Oil Company Ltd, the national oil company of Dubai).

As per the Farm-out Agreement, Kuwait Energy will assign a 15% participating interest in the Block 9, Iraq service contract comprised of 8.57% participating interest in Block 9, Iraq to Dragon Oil in consideration for US$100 million in cash; and 6.43% participating interest in Block 9, Iraq to Dragon Oil in settlement of a dispute with Dragon Oil in relation to a non-controlling interest in Block 9, Iraq.

The agreement was signed on 11 February 2018 by Ali Rashid al Jarwan, Dragon Oil Chief Executive Officer (CEO); and Abby Badwi, the CEO of Kuwait Energy.

Abby Badwi, Chief Executive Officer of Kuwait Energy, said:
“This is a great moment for Kuwait Energy and Dragon Oil. The extension of our Block 9 partnership with Dragon Oil has meant that both Companies can work as equal equity partners on the concession allowing us to best utilise our joint technical expertise in delivering the submission of the Block 9 full field development plan to the Iraqi government.

The reduction in future Block 9 capital expenditure exposure coupled with the material cash injection strengthens Kuwait Energy liquidity position going forward.”

The assignment of the 15% participating interest in Block 9, Iraq from Kuwait Energy to Dragon Oil remains subject to Iraqi government and partner approval. Post granting of these approvals, Kuwait Energy will remain the operator with a reduction in participating interest from 60% to 45%, Dragon Oil participating interest will increase from 30% to 45% with the remaining 10% participating interest being held by Egyptian General Petroleum Company.

Acquisitions and Divestitures News in Kuwait >>

Indonesia >>  6/13/2018 - Ramba Energy has announced the approval from SKK Migas to the previously announced farmout of a 15% participating interest in the Lemang PSC to Mandal...
United States >>  6/12/2018 - Byron Energy Limited (Byron) (BYE) is pleased to announce that Byron Energy Inc., a wholly owned subsidiary of the Company, has been advised by the Bu...

Algeria >>  6/11/2018 - Sonatrach, Total, Repsol and Alnaft (the National Agency for the Valorisation of Hydrocarbon Resources), have signed a new concession contract for a p...
Brazil >>  6/6/2018 - Equinor and its partners in the Carcara North block, ExxonMobil and Galp, have closed their transactions in neighbouring block BM-S-8 as announced in ...

Morocco >>  6/5/2018 - Sound Energy, the Moroccan focused upstream gas company, has announced receipt of Ministerial approval of the Sidi Moktar Onshore Petroleum Agreement ...
Argentina >>  6/4/2018 - Qatar Petroleum entered into an agreement with US Supermajor, ExxonMobil, to become a 30% equity holder in two ExxonMobil affiliates in Argentina that...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Kuwait Oil & Gas 1 >>  2 | 3 | 4 | 5 |

Oil & Gas Projects in Kuwait >>

More News

 

Oil & Gas Companies in Kuwait >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.