Chinese minnow Geo-Jade will spend “a minimum amount of $60mn” over three years to develop Iraq’s Huwaiza block bordering Iran in Maysan province. According to the terms of the Development and Production Contract (DPC) seen by MEES signed between the firm and Oil Ministry’s subsidiary Missan Oil Company (MOC), the figure constitutes the minimum work obligation Geo-Jade is required to deliver “within three years of the approval of the Preliminary Development Plan (PDP).”
The plan is to be submitted “no later than six months” after the “effective date” of the contract, which will be notified by MOC in writing. The latter is the final step after the fifth licensing round (LR5) contracts were ratified by Iraq’s Council of Ministers on 7 February (MEES, 10 February), with both parties having signed the contract on 21 February (MEES, 24 February). Thirty days after the effective date, Geo-Jade will have to submit “an interim work program and budget capable of lasting until the approval of the PDP.” Also, it will have to pay MOC a non-recoverable $10mn signature bonus. (CONTINUED - 578 WORDS)
