BAGHDAD (AP) — A Kuwait-led consortium has inked a preliminary deal with Iraq to search for oil in the country’s oil-rich south as the nation seeks to develop its vast natural resources after decades of war, U.N. sanctions and neglect.
In May, Kuwait Energy and partners, Turkey’s TPAO and the UAE’s Dragon Oil, won the rights to explore the 900-square-kilometer (350-square-mile) Block 9 in the southern province of Basra in Iraq’s fourth energy bidding round. The group will be paid $6.24 for each barrel of oil equivalent.
The contract was signed Monday at Iraq’s Oil Ministry building in Baghdad and will be sent to the Cabinet for final approval.
It is one of four deals Iraq awarded in May’s bidding round to search for oil and gas. Others will be signed this month.