Gulf Oil and Gas accountACCOUNT

Kuwait Energy Signs Block 9 Farm-out Agreement

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

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 >>

Egypt >>  12/9/2018 - Eni has announced that the sale of a 20% participating interest to Mubadala Petroleum, a wholly-owned subsidiary of Mubadala Investment Company, and a...
United Arab Emirates >>  12/9/2018 - The Abu Dhabi National Oil Company (ADNOC) announced the four percent stake in its onshore concession, previously held by CEFC China Energy Company Li...

Mozambique >>  12/8/2018 - Qatar Petroleum entered into an agreement with an ExxonMobil affiliate to acquire a 10% participating interest in three offshore exploration blocks in...
Norway >>  12/7/2018 - Completion of the Babbage Area sale: Premier has announced that following receipt of necessary approvals, the sale of its interests in the Babb...

Norway >>  12/5/2018 - Faroe Petroleum is pleased to announce it has signed a binding agreement with Equinor Energy AS (a wholly owned subsidiary of Equinor ASA) (Equinor) t...
Norway >>  12/3/2018 - Following Aker BP's stock exchange notice dated 31 July 2018 regarding the company's agreement to acquire a portfolio of 11 licences on the Norwegian ...

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

Related Links

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