Kurdistan Region of Iraq
Country overview
The Republic of Iraq, formerly known as Mesopotamia, is a country in the Middle East. It is bordered by Kuwait, Saudi Arabia, Jordan, Syria, Turkey and Iran. Its very narrow coast lies on part of the Persian Gulf. There are two major flowing rivers: the Tigris and the Euphrates. These act as vital sources for the country and provide it with fertile soil in contrast with the desert landscape that covers most of the Middle East. Iraq's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings. Iraq is a member of OPEC, though not currently subject to production quotas.
Iraq is arguably one the most abundant countries in the world in respect of hydrocarbon resources potentially available to the industry. Iraqi proven oil reserves are conservatively estimated to be in excess of 100 billion barrels. Iraqi authorities have set a production target of 6 MMbbl/d by 2013 and it is expected that the country will require significant levels of foreign investment to finance the reconstruction of its oil industry to achieve that goal.
Map of our assets
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Licence Area
In the Kurdistan region of Iraq, our licence is onshore.
Taq Taq
The Taq Taq field is located in the Kurdistan Region of Iraq, 60 km north of the giant Kirkuk oil field, 85 km south-east of Erbil and 120 km north-west of Sulaimaniyah.
Addax Petroleum, through its participation in Taq Taq, is an early entrant in what is potentially a world class oil field.
In July 2005, Addax Petroleum entered into a farm-in agreement with Genel Enerji A.S. (Genel) for a 30% interest in a Production Sharing Agreement (PSA) for the Taq Taq field. Addax Petroleum subsequently increased its equity position in the Taq Taq field to 45% when it acquired an additional 15% participating interest, subject to Kurdistan Regional Government (KRG) back in rights, from Genel Enerji by way of Revised Production Sharing Agreement in November 2006. The Revised Production Sharing Agreement entered into by Addax Petroleum and Genel Enerji with the KRG also expanded the geographic scope of the original PSA to include the Kewa Chirmila prospect. The Production Sharing Agreement was revised again in February 2008 in order to conform to the model Production Sharing Agreement published by the KRG and gave the KRG the right to require that at a future date a government nominated entity is assigned a 20% interest, which would reduce Addax Petroleum’s interest to 36%.
Description
The licence area covers an area of approximately 235,100 acres (951 km2), which includes the TaqTaq field and Kewa Chirmila prospect. In 2007, TTOPCO acquired 292 km2 of 3D seismic covering the Taq Taq field and 218 km of 2D seismic covering the remainder of the licence area including the Kewa Chirmila prospect.
Sangaw North
The licence area covered by the Sangaw North PSC is located in the Kurdistan Region of Iraq, 80 km south-east of the Taq Taq field.
Description
- Covers an area of approximately 121,600 acres (492 km2)
- Contains a large surface anticline and a number of surface oil seeps
To date, exploration activity includes field studies and the acquisition of 300 km of 2D seismic, completed in late 2008, which is currently being processed. Addax Petroleum holds a 26.67% working interest in the Sangaw North PSC. The operator, Sterling Energy plc, is targeting the spudding of an exploration well in 2009.
Addax Petroleum's original 33.33% working interest was reduced to 26.67% following an assignment to Korean National Oil Corporation in December 2008. In addition, the KRG has the right to require that at a future date a government nominated entity is assigned 25% which, if exercised, will further reduce Addax Petroleum’s interest to 20%.