We are now initialing a contract between the Iraqi oil ministry and Pakistan Petroleum,” said Abdul Mehdi al-Amidi, the head of the ministry’s contracts and licensing department.
Referring to deals with consortia led by Kuwait Energy and Russia’s Lukoil that will be initialed on Monday and Tuesday respectively, Mr Amidi said: “We will send all these agreements to the cabinet for approval, and then we will sign the final contract. “That will take about one month.”
During a two-day auction for exploration blocks in May, Pakistan Petroleum won a contract for a 6,000 square kilometer block thought to contain gas in the Iraqi provinces of Diyala and Wasit.
The company agreed to a remuneration fee of $5.38 per barrel of oil-equivalent eventually extracted.
The May 30-31 sale, which ended with three blocks awarded to foreign firms, was labelled a failure by analysts as eight of the 12 blocks on offer received no bids whatsoever, including two that were offered twice.
Iraq has proven reserves of 143.1 billion barrels of oil and 3.2 trillion cubic meters (111.9 trillion cubic feet) of gas, both of which are among the highest such deposits in the world.—AFP