Iraq Signs 13 Exploration Deals to Boost Oil & Natgas Output

Iraq has signed preliminary exploration deals with Chinese companies, according to the Oil Ministry

• The 13 initial contracts are with Chinese companies, including CNOOC, Sinopec, Geo-Jade, Bloomberg said.
• This should boost oil production by 750k b/d and gas by 850 mcf/d.
• The additional gas will be used for power generation & support energy sector.
• The additional gas output should provide the required quantities of gas for self-sufficiency, the Undersecretary of the Ministry for Extraction Affairs, Basim Muhammad Khudair, said. Iraq currently relies heavily on imported gas from Iran.
• Anonymous sources told Reuters that Iraq has adopted profit sharing contracts rather than technical service deals to attract more investment.
• Iraqi news agency said the fields covered are Al-Faw exploration block, Jabal Sanam, Sumer, Abu Khaima, Dima field, Allan and Sasan, Al-Khulaisiya exploration block, Al-Qarnain, Zurbatiya exploration block, and the exploratory patch No. (7), Al-Dhafriya exploration block, the East Baghdad field, and the Middle Euphrates fields
• The deals still need approval from Iraq's ministerial energy council.