The two year negotiations held between the Ministry of Oil of Iraq and OAO Stroytransgaz resulted in signing a contract for exploration of promising Block 4 “Western Desert”.
Thursday, January 23, 2003
The two year negotiations held between the Ministry of Oil of Iraq and OAO Stroytransgaz resulted in signing a contract for exploration of promising Block 4 “Western Desert”.
This contract with 10 year validity period and further extension Clause was signed during the visit of the Russian representative delegation headed by Mr. Ivan Matlashov, Deputy Minister of Energy to Baghdad. The organization of works on realization of the Contract for exploration of oil and gas resources in the area of promising Block 4 “Western Desert” will be carried out by the oil company Stroytransgaz-Oil, a subsidiary of OAO Stroytransgaz. Promising Block 4 with the total area of 12.6 thousand square km is located 150 km to south west of the capital of Iraq. Not much geological survey has been carried out in this area and there are almost no infrastructure facilities. At present there are no proved oil and gas reserves in the above mentioned area. At the same time the calculations and results of processing of seismic materials obtained earlier show that on the territory of Block 4 one can discover hydrocarbon reserves in Cretaceous, Jurassic and Permial deposits at the depth of 2000-3500 meters. The assumed program of exploration works has been anticipated for five years and it is envisaged to carry out a whole complex of explorations including both processing of previously obtained seismic data and carrying out new survey by using the 2D and 3D methods and drilling of two exploratory wells.
