BAGHDAD: Iraq signed a final gas exploration contract with Pakistan Petroleum yesterday as part of its drive to attract investment in its energy sector following years of neglect.
The contract gives the Pakistani company the right to explore gas block 8, covering an area of 6,000skm in Diyala and Wasit provinces in eastern Iraq.
Iraq has the world’s 10th-largest gas reserves and has said its priority will be to use it on the domestic market, mainly for power generation. But it has left open the possibility of allowing gas exports once domestic needs are met.
“Developing exploration block 8 could be very promising as a source of gas to feed the country’s power plants in future and open the way for Iraq to be a major exporter,” said Ahmed Al Shamma, Iraq’s Deputy Oil Minister, during a signing ceremony.
Iraq has already signed scores of contracts with foreign companies to develop its oil industry as it seeks to rebuild after years of war and economic sanctions.
Reuters
