Kuwait Energy 'seals Iraq block deal'

Kirkuk oilfield in Iraq

Taking controls: Kuwait Energy on Iraq's Block 9

AFP/SCANPIX

By News wires

 09 January 2013 16:06 GMT

Iraq has approved an oil exploration deal with a Kuwait Energy-led group that will replace Turkey's state-owned TPAO, which the Cabinet decided to expel, according to a report.

Iraq last year asked Kuwait Energy to acquire TPAO's shares in exploration Block 9, in which it held a 30% stake, amid souring diplomatic ties with Turkey.

"Kuwait Energy has acquired the stake of the Turkish company TPAO, and now it's holding 70% of the contract, and Dragon Oil will hold 30%," Abdul-Mahdy al-Ameedi, director of the Oil Ministry’s contracts directorate, was reported as saying by Reuters.

The ministry plans to sign the final deal on 27 January, he added.

The contract gives the consortium rights to explore and develop the oil block located in Iraq's southern Basra province.

The Iraqi government has been angered…

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