02 August 2012, Thursday, 15:32

Bashneft initialed a contract on investigation and development of the Block 12 in Iraq

author: Sergey Zakharov

JSOC Bashneft, «Premier Oil» (Great Britain) and the Ministry of Oil of Iraq initialed in Bagdad a contract on geologic exploration, development and extraction at the Block 12. Thus, the Russian oil company gave a preliminary consent to work in the Asian country. Now the document is directed for coordination to the Iraq Cabinet of Ministers, the Bashneft press-service informs.

The obligatory program of geologic exploration works at the Block 12, planned for five years with possible prolongation two times for two years, includes carrying out of a 2D-seismic survey of 2000 linear kilometres and drilling of one exploratory well. At acknowledgement of commercial stocks the contract validity period will make 20 years. Compensation for the extracted oil will make five dollars per barrel.

It should be mentioned that the Block 12 is located in provinces Nadzhaf and Mutanna, approximately in 80 km southwest the city of Samava and in 130 km to the west of the city of Nasriya. It is a part of unexplored region with the greatest oil potential in Iraq — the Western desert. The Block area is about 8000 square kilometres.