UEG Signs FAO Block Exploration, Development, and Production Contract
On 27th October 2024, the Iraqi Ministry of Oil (MoO) held the Contract Initiation Event for the Fifth-plus and Sixth Licensing Round in Baghdad. Representatives from United Energy Group (UEG) and other winning bidder companies were invited to attend. At 1：30 pm (Iraqi time), under the patronage of the Iraq Vice Prime Minister and Minister of Oil, H.E. Mr. Hayan Abdulghani, UEG representative Mr. Chang Guangfa and Basra Oil Company Director General Mr. Basim Abdul Karim signed the FAO Oil and Gas Exploration, Development and Production Contract (EDPC).
Numerous international oil companies actively participated in the Fifth-plus and Sixth Licensing Round in May. Chinese companies performed well and won the bids for 10 oil and gas fields. UEG successfully obtained the FAO oil and gas field in southern Iraq with an excellent remuneration percentage, becoming the field’s operator. This is the third oil and gas field acquired by UEG in Iraq after the successful development of the Block-9 Oil Field and the Siba Gas Field, further expanding the Group's operating share of high-quality oil and gas assets in Iraq.
FAO, the largest oil port in Iraq, has a strategic location connected to the Persian Gulf and close to the mouth of the Shatt al-Arab River. The FAO field is in an oil and gas rich zone adjacent to the borders of Kuwait and Iran. It spans an area of 1,398 square kilometers, with estimated geological reserves exceeding 6 billion barrels of oil and gas. In addition to upstream oil and gas development, FAO also offers potential for downstream refining, oil product trading, new energy, and other projects, with huge potential for future growth.
In the next phase, UEG will leverage its expertise in the oil and gas sector, drawing on its successful experiences from the Siba Gas Field and Faihaa Oil Field, for the exploration and development of the FAO field in a responsible and sustainable manner. UEG will continue to adhere to the principles of mutual advantage, enhancing communication and collaboration with local government and relevant departments. The goal is to develop the FAO field into a medium-sized oil and gas field as quickly as possible, contributing to the growth of Iraq's energy industry.
Looking to the future, UEG will leverage its international experience and management expertise, as well as the “Belt and Road” initiative, to enhance energy cooperation with Iraq. The Group will continue to explore the Iraqi market, actively participate in various cooperation and construction projects in the energy sector to support the long-term development of the Iraqi energy industry. As UEG pursues its medium- and long-term plans, the Group will maintain a strong commitment to sustainable growth for an even more brilliant future.