Kuwait Energy signs export oil sales deal for Iraqi block

Richard Masoner flicker oil pumpThe agreement articulates the mechanism by which Kuwait Energy will be paid for services in the Block 9 oil field. (Image Source: Richard Masoner/Flickr)Kuwait Energy signs export oil sales agreement with State Oil Marketing Company (SOMO) for the Block 9 oilfield onshore Iraq

The agreement was signed between a consortium led by Kuwait Energy and SOMO, the Iraqi national company responsible for marketing country’s oil, and puts in place the mechanism by which Kuwait Energy will be paid for services in the Block 9 oilfield. The agreement will enable allocation of crude cargoes to be sold in compensation for the services the consortium is rendering in the block.

The agreement was signed at SOMO’s Baghdad headquarters and the event was attended by Majid Al-Hilfi representing SOMO, Kuwait Energy CEO Sara Akbar, Egyptian General Petroleum Corporation assistant deputy CEO for development and reservoir production department Ibrahim Fathy and Dragon Oil Holdings representative Asri Mousa.

“Today marks an important milestone in Kuwait Energy’s history and its Iraq operations in particular, as this agreement will facilitate receiving revenue from our Iraq operations after five years of Kuwait Energy’s work and investment in Iraq,” said Akbar.

Kuwait Energy received the exploration, development and production service contract (EDPSC) for Block 9 as operator in southern Iraq in 2013 and it currently holds a 60 per cent participating interest.

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