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Egypt’s EGPC has a 10% stake in a southern Iraq field that is expected to produce 80 MBOPD

The Egyptian General Petroleum Corporation (EGPC) plans to start crude oil production in South Iraq’s Block 9 by the beginning of 2016, reports Daily News Egypt. EGPC has a 10% stake of Kuwait Energy in the area, the first international investment for the company.

Initial tests for crude oil production estimate that 11 MBOPD will be produced, with actual production estimates predicting 80 MBOPD. EGPC CEO Tarek El Molla said the southern Basra field’s reserves are 1,100 MMBO.

EGPC ‘s share will be exported to Egyptian refineries to meet local market needs.

El Molla said that EGPC’s expansion into Iraqi projects will help meet the company’s internationally driven strategy to produce extra income for the country. El Molla expressed optimism about the investment, saying it will help to build stronger economic relationships between Egypt and Iraq.

According to the agreement, EGPC will partner with Dragon Oil and Kuwait Energy, with the latter providing the operational work. El Molla said, “The project will be done in the zone in Basra through our companies, including Enppi, Petroject and Sun Misr.”

Sherif Ismail, Minister of Petroleum and Mineral Resources of Egypt said, “The partnership between EGPC and Kuwait Energy is a successful example of the public sector and the private sector coming together, each sector bringing in its share of knowledge, skills and strengths for the interest of the country,” in Kuwait Energy’s press release.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.