Oil Search signs PSC in Kurdistan

Oil Search Limited has signed a Production Sharing Contract (PSC) for the 632 square kilometre Shakal Block with the Kurdistan Regional Government (KRG) in Iraq.

The Shakal Block lies in the southeastern fairway of the prolific Zagros Fold belt of Kurdistan and lies immediately south east and on trend with the Pulkhana Field, which has reported proven reserves of around 300 million barrels of oil. Surface geology, digital terrain models and topography indicate that the Pulkhana structure could extend into the Shakal block. Oil Search estimates that the block has the potential to contain mean unrisked recoverable reserves of some 250 million barrels, either in a separate structure or as a continuation of the Pulkhana field.

200 kilometres of 2D seismic has recently been acquired over the structure and two exploration/appraisal wells are planned to test the Shakal structure in mid/late 2008.

The Shakal PSC fully conforms to the Model PSC required under new Iraqi oil and gas laws and has a seven year exploration period and a 20 year extendable production period.

Source : www.oilsearch.com/