CNOOC signs deal to explore Iraq’s block 7

China’s CNOOC Ltd. signed on Wednesday an Exploration, Development, and Production Contract (EDPC) with Iraq’s state-owned Midland Oil Company to explore oil and gas in Block 7, a 6,300-square-kilometre area in Diwaniyah province.

CNOOC Africa Holding Ltd., fully owned by CNOOC, will hold a 100 per cent interest and operate the block, with exploration to begin under a three-year initial phase.

The agreement follows CNOOC’s successful bid in Iraq’s latest licensing round, which adopted profit-sharing terms in a shift from previous service contracts. CNOOC, already a major player in Iraq’s Maysan field, views Block 7 as a promising asset.

Attribution: Reuters

Subediting: Y.Yasser