Bashneft signs contract for exploration and development of Block 12 in Iraq

Nov 12, 2012 12:00 AM

The Consortium comprising Bashneft (70%) and Premier Oil (30%) and South Oil Company acting on behalf of the Republic of Iraq have signed the exploration, development and production service contract (EDPSC) for Block 12.

The obligatory geological exploration programme at Block 12 under the contract includes 2D seismic survey totalling 2,000 linear kilometres and drilling one exploration well. The contract also stipulates that US$ 120 million must be invested in geological exploration under the programme within a five-year period.

If commercial oil reserves are proved, the contract will be concluded for 20 years. The fee for produced oil will amount to US$ 5 per barrel. The payments will start after achieving the 25% level of the expected oil production plateau which will be determined after the end of geological exploration and evaluation of reserves and recorded in the development project approved by the Iraqi Ministry of Oil.

According to the terms of the contract, within a month after the contract is signed, the members of the Consortium will pay Iraqi partners a bonus totalling US$ 15 million on a pro rata basis (Bashneft and Premier Oil will pay US$ 10.5 million and US$ 4.5 million respectively). Besides, under the contract, Bashneft, being the operator of the project, has to set up an office in Baghdad by the end of 2012.

Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.

Cover_242-width

The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


 

Upcoming Conferences
« August 2017 »
August
MoTuWeThFrSaSu
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31

Register to announce Your Event

View All Events