Kuwait Energy Plc signed a farm-out agreement with Egypt's General Petroleum Corp (EGPC) for 20 per cent of its participating interest in Iraq’s Siba field, the company said.
The agreement, signed in Egypt on Monday, remains subject to Iraqi regulatory approval.
The Siba deal marks the second partnership between Kuwait Energy and EGPC in southern Iraq. EGPC became a partner last year in the Block 9 concession operated by the Kuwaiti firm.
Kuwait Energy was awarded a 20-year gas development and production service contract for the Siba field in 2011, granting the company operatorship and 45 percent revenue interest. It is currently finalising construction of the Siba gas plant to begin production in 2017.
“Kuwait Energy is thrilled to be well-positioned to bridge economic ties in the region and create value and opportunities for everyone included,” said Sara Akbar, chief executive of Kuwait Energy.
“EGPC’s participation in Iraq’s Siba field is yet another reflection of our outward strategic relationship with Kuwait Energy. Our increased investments in Iraq further solidifies the economic ties between Egypt, Kuwait, Iraq and the wider region,” Tarek Al Molla, Egyptian Minister of Petroleum, and Tarek Al Hadidy, chief executive of EGPC said in a statement.
Upon completion of this transaction, Kuwait Energy will hold a 40 per cent share in the Siba concession, while Turkey’s TPAO will continue to hold 40 per cent and EGPC will hold 20 per cent.