Iraq Approves Three Energy Service Contracts, Delays One

Iraq’s Cabinet approved service contracts for oil and gas exploration on blocks 8, 10 and 12, and delayed a decision for Block 9, a government spokesman said.

The approval on Block 9 is delayed until the Oil Ministry “completes procedures related to it,” Ali Al-Dabbagh said today in an e-mailed statement, without providing details.

The government awarded three out of 12 blocks that were offered in an energy auction in May, and later agreed to sell rights for the oil Block 12 to Russia’s OAO Bashneft.

Russia’s OAO Lukoil and Inpex Corp. of Japan won a joint bid to explore for crude in block 10 in southern Iraq, while Pakistan Petroleum Ltd. (PPL) won rights to explore for natural gas in Block 8 in eastern Iraq. Kuwait Energy Co., Dragon Oil Plc (DGO) and Turkiye Petrolleri AO won a license to explore for oil in Block 9, located along the Iranian border.

Iraq holds the world’s fifth-largest crude reserves, according to annual statistical data compiled by BP Plc that include Canadian oil sands. The country also has the Middle East’s fifth-biggest deposits of natural gas.

To contact the reporter on this story: Nayla Razzouk in Dubai at nrazzouk2@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net