The Oil Ministry of Iraq expresses it has finalized a contract with an association led by Bashneft, Russian oil giant. The aim of this deal is to search for potential oil in the south of this.
Assem Jihad, the spokesman of Ministry, expresses Bashneft and its trade partner of UK, Premier will explore the 8,000 square kilometer (3,100-square-mile) area. And the area is in Block 12 which shared by the provinces of Najaf and Muthana. For each barrel of oil, they will be paid an amount of $5 (US).
The agreement ceremony took place on Thursday, 8th November at the Oil Ministry in Baghdad. The deal is one of four contracts Iraq awarded in its recent bidding round to search for oil and gas. Iraq resides top of 143.1 billion barrels of oil reserves and 126.7 trillion cubic feet of natural gas. Iraq is trying to progress its huge resources of oil and gas after decades of U.N. sanctions and neglect.