View Full Version : Kuwait Energy In, Turkey’s TPAO Out

Investors Iraq News
01-09-2013, 08:42 PM
By John Lee.
Iraq has approved the deal under which Kuwait Energy would replace Turkey’s state-owned Turkiye Petrolleri AO (TPAO) on the Block-9 exploration contract.
Abdul-Mahdy al-Ameedi, director of the ministry’s contracts directorate, told Reuters:
“Kuwait Energy has acquired the stake of the Turkish company TPAO, and now it’s holding 70 percent of the contract, and Dragon Oil PLC will hold 30 percent.“
A consortium of companies, comprising Dragon Oil (30%), TPAO (30%) and Kuwait Energy (40% and operator), was awarded the exploration, development and production service contract for the 900-square-kilometer (350-square-mile) Block 9 in Iraq’s fourth bidding round in May (http://www.iraq-businessnews.com/2012/05/31/just-1-deal-on-first-day-of-iraqs-energy-auction/). The bid for Block 9 was awarded on the basis of a remuneration fee of US$6.24 per barrel of oil equivalent.
As a result of the deteriorating relations with Turkey, caused by the closer links between Turkey and Iraqi Kurdistan, and not helped by the situation in Syria, Iraq asked Kuwait Energy (http://www.iraq-businessnews.com/2012/11/07/iraq-expels-turkeys-tpao-asks-kuwait-energy-to-replace/) last year to acquire TPAO’s shares in the block.
The oil ministry plans to sign the final deal on 27th January.
(Source: Reuters)

Source: Iraq-BusinessNews.com. (http://www.iraq-businessnews.com/2013/01/09/kuwait-energy-in-turkeys-tpao-out/)

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