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FINANCIAL NEWS
Iraq to launch oil and gas blocks auction
29 May 2012
(MENAFN) Iraqi oil ministry’s director of the contracts and licensing directorate, Abdul-Mahdy Al Ameedi, stated that since the country works to expand its oil sector, the government plans to auction 12 new oil and gas exploration blocks, reported The Peninsula.
Al Ameedi said that most of the exploration blocks are located in remote parts of western and central Iraq, adding that firms that win bids will have the opportunity to extract gas discovered in the blocks immediately, however, the government may pay firms compensation to keep oil in the ground and increase its own reserves
He added that 47 energy firms met the requirements to participate in the auction, which will be launched this week, including BP and Russia’s Gazprom.
It is worth noting that Iraq, which holds the fourth largest oil reserves in the world, is expected to see additional 29 trillion cubic feet of gas and 10 billion barrels of oil after the auction.
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