Pakistan Petroleum to explore Iraq gas block
Iraq has signed an initial gas exploration contract with Pakistan Petroleum as part of its push to attract more foreign investment to develop its energy sector.
The contract gives the Pakistani company the right to explore gas Block 8 in Diyala and Wasit provinces in eastern Iraq, Reuters reported.
Iraq will also sign an initial contract with a consortium led by Kuwait Energy for oil Block 9 on Monday and a deal to explore oil Block 10 will be signed with a group led by Russia's Lukoil on Tuesday, the news agency added..
Pakistan Petroleum, Kuwait Energy and Lukoil won their bids in May at Iraq's fourth energy auction, which had a poor showing because of tough contract terms drawn up by Baghdad.
Iraq has offered foreign companies less attractive service agreements where they are paid a fee rather than production-sharing deals that allow them to profit jointly from the output.
The country is slowly rebuilding nine years after the US-led invasion that toppled dictator Saddam Hussein. Officials say it needs foreign investment in virtually every sector to improve its infrastructure.