Iraq’s cabinet on 17 September approved the termination of Pakistan Petroleum’s development contract at Block 8 following a mutual agreement between the firm and the Ministry of Oil. The 6,000km2 Block 8 straddles the northeastern Diyala and Wasit provinces. The Pakistani state firm was awarded an Exploration, Development and Production Service Contract (EDPSC) in 2012 as part of Iraq’s gas-focused fourth licensing round (MEES, 4 June 2012).
That round saw little IOC interest, with only three of the twelve blocks on offer awarded. Pakistan Petroleum outbid a consortium of Japanese firms Japex and Itochu, undercutting them with a remuneration fee of $5.38/boe. However, the firm has since made little effort to develop the block amid security concerns following Islamic State’s 2014 offensive. Of the other blocks awarded in 2012, UEG’s Block 9 is now producing nearly 100,000 b/d (MEES, 12 July), while at Block 10 Lukoil and Inpex target 250,000 b/d by 2028 from the Eridu discovery (MEES, 15 December 2023). (CONTINUED - 170 WORDS)