Kurdistan Region of Iraq approves Maersk Oil’s purchase of two blocks

oil kri-cfiesler flickrThe two blocks are located about 150km east of Erbil. (Image source: cfiesler/Flickr)Maersk Oil has received approval from Kurdistan Regional Government (KRG) to buy 40 per cent stakes each in two exploration blocks from Repsol Oriente Medio SA

KRG will hold the remaining 20 per cent stakes each in blocks Piramagrun and Qala Dze, Maersk Oil said. Both the blocks are located about 150km east of Erbil.

Repsol Oriente Medio SA will continue to operate oil and gas exploration activities and hold the remaining 40 per cent interest in the blocks, the Danish explorer said.

The price for the stakes has not yet been disclosed.

In 2012, Spain’s Repsol Oriente Medio SA had undertaken a significant 2D seismic acquisition programme which had identified a number of drilling targets in the area, Reuters reported.

Jakob Thomasen, cheif executive of Maersk Oil, said, “Being present and active in one of the world’s most promising and prolific exploration basins is a fundamental part of Maersk Oil’s strategy.”

Maersk Oil had produced 229,000 boepd in Q3 2013 but is targeting 400,000 bpd for the year 2020, the company said.

“We expect our position in Kurdistan Region of Iraq to help us sustain the target production level beyond 2020,” Thomasen added.

The company has also announced that it will spend US$3bn to US$5bn annually on developing projects in the region.

Maersk Oil has been present in the Sarsang Block in the Kurdistan Region of Iraq since 2011 with its 30 per cent shareholding of HKN Energy.

 

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