ArabianBusiness.com - Middle East Business News
Sunday, 08 November 2009 22:47 UAE time

YOUR DIRECTORY /

| Share |

Oil Search signs Iraq contract

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Wednesday, 14 May 2008

It has been announced that Oil Search has signed a production-sharing contract in Iraq for an area with potential reserves of 250 million barrels of oil. The company, focused in Papua New Guinea, has secured the rights to the 632 km2 Shakal block, with an 18.75% stake in the venture and a 15 % revenue interest.

Oil Search is hoping the area will be in trend with the Pulkhana oil field, which has proven oil reserves of 300 million barrels.  In the deal with the Khurdistan Regional Government, Oil Search has a seven year exploration period and a 20 year extendable production period.  Work will commence on the project in mid-late 2008 when they will drill two wells to test the Shakal structure.

"Kurdistan is one of the few places left in the world where independent oil companies can capture material exploration positions with large reserve potential and on satisfactory commercial terms," managing director Peter Botten said. "The region is lightly explored and contains some of the most prospective geology in the world."

Story continues below
advertisement

Iraq is still considered by many majors too high risk for new development. However, Botten feels that the Kurdistan region is safe: "Although Iraq is clearly a high-risk area, the Kurdistan region is regarded as relatively stable from a business and security risk perspective with increasing foreign investment occurring as a consequence."

Oil Search is already active in Iraq, with a 20% shareholding in a company that holds a 50% stake in the Bina Bawi production contract. The hope is the two contracts will make a contribution to the company's production prior to the proposed PNG project in 2013/14.

| Share |


READERS' COMMENTS

Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.

Click here to post a comment


Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

From  Current Issue

SHARE PRICE CHECK

 EMAIL ALERTS

  1. Oil Search

  2. Energy


Tell us your story

READER COMMENTS

  1. The tipping scandal 13
    08 Nov ' 09 at 16:32
    Steve you are 100% right. Managers and bosses have no right to use tip money for any other purpose than todistribute it to the staff...   More  »
  2. The party's just beginning 10
    08 Nov ' 09 at 18:31
    The recession may be coming to an end, but my guess is that there is no party in sight, just a depression! The typical line i hear in...   More  »
  3. Al Habtoor chief upbeat on Dubai future 08
    08 Nov ' 09 at 20:55
    I agree with Mr Khalafs comments, yesterday is gone,tomorrow nobody seen, what he is expecting beyound tomorow ,is his positive...   More  »

Read all user comments >

Gitex 2009

MORE FROM ARABIANBUSINESS.COM