As a result of the 4th licensing round in Iraq, LUKOIL Overseas (wholly-owned subsidiary of LUKOIL) and INPEX Corporation of Japan were awarded rights to explore Block 10 in Southern Iraq.
Block 10 covers an area of 5,500 square kilometers and is located 120 km west of the city of Basra. Major oil companies are developing giant oil fields (Rumaila, West Qurna-1, West Qurna-2 and Al-Garraf) in this area where large oil reserves are concentrated.
LUKOIL Overseas as operator of the block will have a 60% share in the project and INPEX will hold the remaining 40%. Bids made by the winning companies included a remuneration fee of $5.99/boe, signature bonus of $25 million as well as 1375 line kilometers of 2D-seismic and drilling of one exploration well as a minimum work program with minimum investment of $100 million. Detailed conditions of the petroleum agreement for Block 10 will be further discussed with the Government of Iraq.