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FINANCIAL NEWS
Iraq awards oil exploration contract to Kuwaiti-Emirati group
12 Jan 2013
(MENAFN) Iraqi government has given an oil exploration license to a Kuwait-led group, replacing a previous agreement with a Turkey’s TPAO that was scrapped amid worsening ties with Ankara, AFP reported.
The cabinet said in a statement that is has approved a deal with Kuwait Energy for a 900-square-kilometer (347-square-mile) exploration block in south Iraq, near the country’s border with Iran.
Kuwait Energy will increase its stake in the project to 70 percent, with UAE’s Dragon Oil holding the remainder.
The original consortium of TPAO, Kuwait Energy and Dragon Oil had won the exploration contract for the block in May.
It is one of several agreements between Baghdad and foreign energy firms to boost oil output and explore for new deposits of energy as Iraq looks to cement its role as a key global oil supplier.
TPAO has been excluded from the deal as Baghdad and Ankara have been at odds over the Syrian conflict and Iraq has publicly urged Turkey to hand over fugitive Vice President Tareq Al-Hashemi, who has been sentenced to death in Baghdad on charges of running a death squad.
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