China National Offshore Oil Corporation (CNOOC Ltd) announced on Wednesday that it has entered into an Exploration, Development, and Production Contract (EDPC) with Iraq’s state-owned Midland Oil Company. This agreement focuses on exploring oil and gas resources in the Block 7 field, located in central Iraq.
CNOOC Africa Holding Ltd, a wholly owned subsidiary of CNOOC, will hold a 100% interest in the 6,300-square-kilometer Block 7 and will serve as the operator for the project. This deal formalizes CNOOC’s successful bid during Iraq’s recent licensing round, which marked a significant policy shift from technical service contracts to profit-sharing arrangements with partners.
The initial stage of the exploration period is set to last three years, although CNOOC did not specify the start date for this phase.
CNOOC is one of the key international oil producers operating in Iraq, with its activities concentrated primarily in the Maysan field in the southeast region. A senior executive from CNOOC indicated in August that Block 7 has the potential for substantial discoveries, reflecting the company’s commitment to maintaining high standards when selecting investment opportunities outside China.
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