Block-8 has already a discovery and is estimated to hold 645 million barrels of in place reserves, of which 54 million are recoverable.
“The service exploration and production contract for Block-8 have been concluded and the agreement is likely to be signed in the next couple of months, an official said.
The contract would be a service contract wherein OVL will be paid about 18% rate of return on its investment. The official said OVL was also considering bidding for the 6 pumping oilfields Iraq has placed an offer in its first licensing auction. It is talking to two international oil firms for a joint bidding.
OVL wants 51% and will give 24% to the partner. The rest 25% would be with Iraqi national oil company.
