Kuwait Energy Company signed two 20-year Gas Development and Production Service Contracts with the Iraqi Ministry of Oil for the Siba and Mansuriya fields. Both fields were won by Kuwait Energy and its partners during Iraq’s Third Petroleum Licensing Round in October 2010.
The Siba contract was signed on behalf of the Iraqi Ministry of Oil by the Acting Director General of the South Oil Company, Faisal Khalaf, and for the Mansuriya contract by the Director General of the Midland Oil Company, Dalman Najem Abdullah. Sara Akbar, Kuwait Energy’s Deputy Chairman and Chief Executive Officer signed the contracts as well as other partner representatives.
Sara Akbar, said, “The signing marks the beginning of a long-term partnership with Iraq, a milestone for Kuwait Energy and a step forward in Kuwaiti-Iraqi relations. Along with our partners, we are very excited to start participating in the development of the country’s natural gas resources. The gas will be utilized to generate power in Baghdad and Basra, providing the Iraqi Government with cost savings, an environmentally friendlier fuel and the opportunity to better serve its people as per its overall plan.”
In October 2010, Kuwait Energy jointly bid with the Turkish Petroleum Corporation (TPAO), the national oil company of Turkey, for both gas fields. The bids were judged on a remuneration fee in US dollars per barrel of oil equivalent (boe) and a plateau production target expressed in millions of standard cubic feet per day (MMSCFD) of dry gas. The plateau production target for Siba is 100 MMSCFD and for Mansuriya is 320 MMSCFD.
Kuwait Energy will be the operator of Siba, participating with a 60% contractor share and TPAO participating with 40%. TPAO will be the operator of Mansuriya, participating with a 50% contractor share. The other 50% is shared by Kuwait Energy (30%) and Korea Gas Corporation (20%).
Following the signing, Kuwait Energy will submit the Siba interim work program and budget for the approval of the South Oil Company. A preliminary field development plan will also be submitted within six months from today.
The Siba field is located in the Basra Governorate and the Mansuriya field in the Diyala province.
