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MOL receives green light for Akri-Bijeel Block development in Iraq

30th October 2014

The ministry for natural resources has officially approved MOL’s field development plan (FDP) for the Akri-Bijeel Block in the Kurdistan region of Iraq

MOL receives green light for Akri-Bijeel Block development in Iraq
Key terms of the related Lifting Agreement and Pipeline Construction Agreement are still under discussion with the ministry

“We are very pleased that the ministry of natural resources approved the FDP (field development plan) for Akri-Bijeel Block, by His Excellency minister for natural resources Dr Ashti Hawrami’s favourable resolutions and signature,” said Alexander Dodds, executive vice president for MOL Group E&P.

“This is a significant mark of appreciation for our plans of long-term close cooperation in Kurdistan, as MOL Group is committed to maintain its presence and increase investments in the region. His Excellency Dr Ashti Hawrami was greatly appreciative of the endeavours and investment MOL is making to help KRG to establish a significant position in oil production.”

MOL Kalegran (a 100 per cent subsidiary of MOL) has been operating in Kurdistan since 2007 and is the operator of the Akri-Bijeel Block. The development will be done in two phases, phase one involves a detailed analysis of determining key factors such as the reserves base, recovery factor, optimum surface facility design and overall field development cost. Phase one will start immediately with four drilling rigs and one work-over rig to help reduce the overall timeline with front-end-loading wherever possible for Phase II.

The FDP is based on two discovery areas, the Bijell and the Bakrman.

Key terms of the related Lifting Agreement and Pipeline Construction Agreement are still under discussion with the ministry.

"The approval of the Field Development Plan for the Akri-Bijeel Block is a culmination of years of exploration and appraisal, which will now lead to a development phase and production in due course,” said John Gerstenlauer, chief executive officer of Gulf Keystone who has a 20 per cent working interest in the block.  “It is an important milestone for all stakeholders in the Akri-Bijeel project."

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