Iraq signs gas deal with Pakistani energy firm

Iraq has signed a deal with a Pakistani energy company to explore for natural gas in eastern Iraq, Xinhua reported.

Published: 16th July 2012 09:54 AM  |   Last Updated: 16th July 2012 09:54 AM   |  A+A-

Baghdad, July 16 (IANS) Iraq has signed a deal with a Pakistani energy company to explore for natural gas in eastern Iraq, Xinhua reported.

"The Iraqi oil ministry is signing a preliminary contract with Pakistan Petroleum to explore for natural gas in Iraq's eastern provinces of Diyala and Wasit," Asim Jihad, head of the ministry's media office, was quoted as saying.

In May, the Pakistani company won exploration concession during Iraq's fourth energy auction.

The company is due to work in a 6,000 square km block in Diyala and Wasit that have presumed natural gas reserves.

It won the contract by offering $5.38 per barrel of oil equivalent.

Iraq's fourth energy auction offered 12 new oil and gas exploration blocks, but only three contracts were awarded to foreign energy companies.

The Iraqi oil ministry also awarded two contracts to Kuwait Energy and Russia's Lukoil.

The three deals are, however, needed to be approved by the Iraqi cabinet before signing the final agreements with the foreign companies.

Iraq has proven reserves of 112 trillion cubic feet of natural gas, but because of poor infrastructure of the oil and gas industries, the country is only producing 1.5 billion cubic feet a day.

The country depends on oil revenues for nearly 95 percent of its budget.

In 2010, Iraq announced its proven oil reserves had increased to 143.1 billion barrels, rising from the previous estimate of 115 billion barrels.

Stay up to date on all the latest World news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp