CNOOC has announced that it has signed an exploration, development, and production agreement with the state-owned Midland Oil Company to explore petroleum and gas in Iraq’s "Block 7" field.

According to ISNA, CNOOC Africa Holding, a fully-owned subsidiary of CNOOC, will hold a 100% stake and act as the operator for the 6,300-square-kilometer Block 7, located in Iraq’s Diwaniyah province.

This contract formalizes CNOOC’s win in the tender for the exploration of this block. To attract international companies, the Iraqi government has shifted from its previous technical service contracts and is now offering profit-sharing agreements instead.

CNOOC announced that the initial exploration phase is expected to take three years. The company, a major international petroleum producer in Iraq, has primarily focused its operations in the Maysan field in southeastern Iraq.

According to Reuters, a senior CNOOC official stated in August that Block 7 has the potential for a major discovery, and the company follows high standards in selecting new international investment opportunities outside China.

BY WPB