<article><p class="lead">Hungarian integrated oil firm Mol and London-listed independent Gulf Keystone (GKP) have relinquished their interests in the Akri-Bijeel production-sharing contract in the semi-autonomous Kurdish region of northern Iraq following a reassessment of the block's recoverable oil and gas resources.</p><p>Mol — which was operator of the block with an 80pc stake — flagged up concerns over Akri-Bijeel's "complex geology" back in September last year. The firm said at the time that uncertainties over regular payments for crude exports in the Kurdish region "work against attractive project economics", although the Kurdistan Regional Government (KRG) has since restored regular monthly payments to foreign operators in the region.</p><p>Mol told investors in September that it planned to "minimise investments" on Akri-Bijeel for the rest of 2015. It then said in November that it was "reviewing future activities" in the block. </p><p>That review led Mol and GKP — which holds the remaining 20pc in Akri-Bijeel — to sign a relinquishment and termination agreement for the production-sharing contract on 31 December last year. </p><p>The KRG awarded the production-sharing contract for Akri-Bijeel in 2007. Two discoveries were made — Bijell in 2010 and Bakrman in 2013. </p><p>The KRG approved a field development plan for the block in 2014, but subsequent appraisal drilling has shown that the geology is more complex than initially anticipated. Mol said in September that the Bakrman discovery cannot be developed economically because of its high hydrogen sulphide content, while the contingent resource estimate for Bijell was put at just 4mn bl of oil equivalent (boe). The Akri-Bijeel block had an estimated 43mn boe of contingent resources on 1 January, 2014. </p><p>"Mol remains committed to maximise the value of its investments in the Kurdistan Region of Iraq, among others in the Shaikan Block," the company said today. Shaikan operator GKP said production from the field averaged 36,000 b/d in December. Shaikan has a production capacity of 40,000 b/d of 16-18°API crude, with a sulphur content of 4.8pc. </p></article>
