Iraq approves Kuwait oil exploration deal

by **chouchou** Thu 10 Jan 2013, 3:05 pm

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Iraq approves Kuwait oil exploration deal

by chouchou Thu 10 Jan 2013, 3:05 pm

BAGHDAD - Iraq has approved an oil
exploration deal with a Kuwait-led group, a statement said Thursday,
replacing a previous agreement with a Turkish firm that was torpedoed
amid worsening ties with Ankara.
The cabinet agreed to
replace Turkey's TPAO with Kuwait Energy for a 900-square-kilometre
(347-square-mile) exploration block in south Iraq, near the country's
border with Iran.
"The cabinet decided... to approve
the adoption of the recommendations of the energy committee regarding...
signing exploration block number nine's contract with a coalition of
Kuwaiti and Emirati companies," a statement said.
Kuwait Energy will up its stake in the project to 70 percent, with Dragon Oil of the United Arab Emirates holding the remainder.
The
original consortium of TPAO, Kuwait Energy and Dragon Oil had won the
exploration contract for the block in a May 30-31 public auction in
which they agreed to be paid a service fee of $6.24 per barrel of oil
equivalent eventually extracted.
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.
Officials announced TPAO
would be expelled in November due to "non-technical issues", one of
several signs of worsening ties between Baghdad and Ankara.
The
two countries 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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