The Company or together with its subsidiaries Dragon Oil or the Group.
The signing of the final deal for Iraqi Exploration Block 9.
Dragon Oil Plc, which is a global oil and gas exploration, production and development company, made a declaration that the Iraqi Ministry of Oil and the Tender Committee signed the final service deal with a group of companies, which also includes Dragon Oil, for the exploration, output and development for Block 9 in Iraq.
Dragon Oil bid along with Kuwait Energy in respect of Block 9. Kuwait Energy is going to be the operator in the service contract for Block 9, taking part in with 70 % contractor share, with Dragon Oil at 30 %. Block 9 is situated in the Basra province of Iraq and it covers an area of nearly 900km2. If Block 9 is found to be commercial during the five-year exploration period, during which time the group is eligible for a probable renewal for another two years twice, the consortium is automatically eligible for 20-year growth and production phases, which is also extendable by a further five years.
Dr. Abdul Jaleel Al Khalifa, who is the Chief Executive Officer, stated that he is pleased to declare the formal signing of the service deal for Block 9, which had earlier been initialed on 16th July, 2012. The step concludes the formal process following which the group now has the right and also obligation to begin the exploration activities in the Block. They are looking forward to working with their partners in Iraq.
Source: [Dragon Oil]