SINGAPORE (Reuters) – China’s CNOOC Ltd announced on Wednesday it has signed an Exploration, Development & Production Contract (EDPC) with Iraq’s state-run Midland Oil Company to explore for oil and gas at the Block 7 field in the Middle East nation.
CNOOC Africa Holding Ltd, the state oil and gas company’s fully owned unit, will hold 100% interests and act as the operator for the 6,300-square-kilometer Block 7, located in central Iraq’s Diwaniyah province.
The deal formalises a winning bid by CNOOC to explore the block, part of Iraq’s recent licensing round under which Baghdad offered profit-sharing with partners instead of the previous technical service contracts, in a landmark policy shift.
Under the contract, the first stage of the exploration period will last three years, CNOOC said, without specifying when it will commence.
CNOOC is one of the main international companies producing oil in Iraq, with activities focused on Maysan field in southeast Iraq.
A top CNOOC executive said in August that Block 7 could lead to a large discovery and the company maintains high standards in picking new investment targets outside China.
(Reporting by Chen Aizhu; Editing by Nicholas Yong)
