Source: Kuwait Energy.
(1) The licence holder, an agency of the Iraqi Ministry of Oil. (2) Subject to agreement by the South Oil Company. (3) Subject to agreement by the by the Iraqi Ministry of Oil.
Summary of Licences: Iraq
Field
Licence
Type
Key Licence Terms
Licence Expiry
Fiscal Regime
Historical
Funding
Arrangements
Siba
Service
Contract
with South
Oil
Company
(1)
•
Right to produce gas and condensate but no oil from all discovered reservoirs that may exist
in the field, as well as the right to explore for undiscovered hydrocarbons
•
Development of undiscovered hydrocarbons subject to different contract
•
Responsibility for the initial processing of recovered hydrocarbons, to separate natural gas,
LPG and condensate
•
Contractual commitment to drill one exploration well by the end of 2015
•
Minimum work obligations:
•
acquire a minimum of 200 km2 of 3D seismic data over the contract area, including
processing and interpretation thereof
•
drill one appraisal well and one exploration well
•
perform detailed studies
•
acquire sufficient data for field development planning
•
minimum expenditure obligation of $25m per field within 3 years of PDP approval
•
Minimum plateau period 9 years
•
July 2031,
with a 5-year
extension
option
(2)
•
45% revenue interest and a
60% cost interest in the licence
•
Cost recovery/remuneration
fee basis with cost recovery
entitlement capped at 50% of
“deemed revenue” pa
•
Unrecovered costs in any
quarter can be carried forward
to the next quarter until
complete recovery is achieved
•
Remuneration fee of $7.50/boe
adjusted for R factor
OCF
Equity
Mansuriya
Service
Contract
with
Midland Oil
Company
•
Right to produce gas and condensate but no oil from all reservoirs that may exist in the field,
as well as the right to explore for undiscovered hydrocarbons
•
Development of undiscovered hydrocarbons subject to different contract
•
Minimum work obligations:
•
acquire a minimum of 150 km2 of 3D seismic data over the contract area, including
processing and interpretation thereof
•
drill two appraisal wells and one exploration well
•
perform detailed studies
•
acquire sufficient data for field development planning
•
minimum expenditure obligation of $25m per field within 3 years of PDP approval
•
Minimum plateau period 13 years
•
July 2031,
with 5-year
extension
option
(3)
•
22.5% revenue interest and a
30.0% cost interest
•
Cost recovery and
remuneration fee as described
above
•
Remuneration fee of
$7.00/boe adjusted for R
factor
OCF
Equity
Block 9
Service
Contract
with South
Oil
Company
(1)
•
5 year exploration period
•
Upon commercial discovery, development phase might be initiated under 20-year service
contract, extendable by 5 years subject to newly negotiated terms and conditions
•
Upon commercial discovery and application to the Iraqi Ministry of Oil, the South Oil
Company may impose a holding period of up to 7 years prior to any such development phase
•
Responsibility for initial processing of recovered hydrocarbons, to separate natural oil, gas,
and water
•
Minimum work obligations:
•
acquire a minimum of 866 km of 2D seismic data over the contract area, including
processing and interpretation thereof
•
drill 1 exploration well to a minimum of 4,500m /500m below the top of the Sulaiy
formation or if exploration period extended, drill an additional exploration well to an
agreed-upon depth
•
perform detailed geophysical and geological studies necessary for the proper exploration
•
minimum expenditure obligation of $90m prior to January 2018
•
Exploration
period until
2018, with a
2-year
extension
option
(2)
•
Cost recovery and
remuneration fee as described
above
•
Remuneration fee of
$6.24/boe adjusted for R
factor
OCF
Equity
38
