Iraq, Pakistan Petroleum Sign Final Gas Deal

Iraq signed a final gas exploration contract with Pakistan Petroleum allowing the Pakistani firm to explore for natural gas in Block 8 in Diyala and Wasit provinces in eastern Iraq.

"Developing exploration block 8 could be very promising as a source of gas to feed the country's power plants in future and open the way for Iraq to be a major exporter," said Ahmed al-Shamma, Iraq's deputy oil minister, during a signing ceremony, Reuters reported.

A handful of international companies won bids in May at Iraq's fourth energy auction, which had a poor showing because of tough contract terms drawn up by Baghdad.

"We are planning to spend a minimum of $100 million to start exploration activities and we might need additional $400 million as investments," Pakistan Petroleum chief executive Asim Khan told reporters in Baghdad.