Kuwait Energy, Dragon Oil in Iraq deal
KUWAIT CITY, February 13, 2018 – Kuwait Energy has settled a dispute with Dragon Oil concerning ownership of Block 9 in Iraq and sold a stake in the concession to the latter, the company announced on Monday.
Dragon Oil has acquired an 8.57% stake in the block for USD 100 million and has received a further 6.43% as a settlement of the dispute, the statement added.
“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,” said Abby Badawi, Kuwait Energy’s CEO.
After the agreement receives regulatory approval, Kuwait Energy will remain operator of the block with a 45% stake in it, alongside partners Dragon Oil (45%) and Egyptian General Petroleum Company (10%).