Kuwait Energy has signed an agreement to sell a stake in the 9-acre concession area in Iraq to Dragon Oil, a subsidiary of Emirates National Oil, the company said on Tuesday.
Kuwait Energy said that under the agreement, a 15% stake in its service contract would be allocated to Dragon Oil’s No. 9 concession area.
The share sold to the UAE company is 8.57% for a cash amount of $ 100 million and 6.43% for settling a dispute with Dragon Oil on a non-controlling interest in Iraq’s concession area 9.
The company said it would continue to be the operator of the concession area with its share of 60% to 45% and the increase of Dragon Oil’s share from 30% to 45%, with the remaining 10% held by the Egyptian General Petroleum Corporation