Iraq Approves Three Oil, Gas Deals

Iraqi cabinet has approved three oil and gas contracts awarded to foreign firms in a May auction.

Reuters reports that the cabinet approved an initial gas exploration contract with Pakistan Petroleum for gas Block 8 and another deal with a group led by Lukoil to develop Iraq's oil Block 10. Approval was also given to an initial deal with Russia's Bashneft to develop Iraq's oil Block 12, but decided to delay approval of a contract signed with a consortium led by Kuwait Energy for oil Block 9.

The fourth round of Iraq’s energy auctions saw less than enthusiastic response and contracts were awarded to just a handful of international companies. There were 12 explored plots up for grabs.

Iraq has proven reserves of 143.1 billion barrels of oil and 3.2 trillion cubic meters of gas, both of which are among the highest such deposits in the world. Along with ramping up oil production, Iraq is keen to increase gas extraction to help boost its low levels of electricity output.