International Finance
Oil & Gas

Iraq, Kuwait sign agreement for joint technical oil field study

Iraq Kuwait ERC
The contract will study options to develop and exploit the oil fields on the border between Iraq and Kuwait

Iraq and Kuwait have signed an agreement for a technical study of its oil fields on the border between the two nations. The two nations have commissioned the UK’s leading oil and gas reservoir evaluation firm ERC Equipoise to study the oil fields and prepare development and investment strategies. London-based ERC Equipoise was picked among a group of four firms which were being considered for the study.

There are several oil fields in the bordering area of the two countries. ERC Equipoise will study the Rumaila South, Rataqa and Safwan Al Abdali oil fields.

The agreement was signed by Kuwaiti Ministry of Oil Sheikh Talal Nasser Al-Sabah and the Iraqi Oil Ministry’s petroleum contracts and licencing directorate chief Abdul Mahdi Al -Ameedi in the Jordanian capital of Amman.

Abdul Mahdi Al-Ameedi told the media that, “ERC Equipoise will provide us with all information related to oil reserves and other information, which paves the way for joint investment between Iraq and Kuwait.”

His counterpart, Sheikh Talal Nasser Al-Sabah said that the agreement was the result of six years of hard work between the two nations.

The agreement also intends to improve the relationship between the two countries, especially when it comes to joint oil production.

Both countries are members of the Organization of the Petroleum Exporting Countries. Tensions between the two nations have long escalated with regards to production from cross-border oil fields. Prior to Iraq’s invasion of Kuwait in 1990, Iraq accused Kuwait of drilling wells and pumping oil in Iraqi territory. However, Kuwait denied the allegation.

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