Iraq signed preliminary agreements with Chinese companies to develop three blocks of oil and gas fields

Beijing. June 7. Silkroadnews - The Ministry signed two agreements with the Chinese company Geo-Jade Petroleum Corporation to develop blocks of the Naft Khana field, eastern province of Diyala, and Huwieza, south-eastern province of Maysan, Sina.com reports citing Abdul-Mahdi al-Amidi, director general of the ministry's Contracts and Petroleum Licenses Department.
Iraq also signed an agreement with another Chinese company United Energy Group (UEG) to develop the al-Sindibad block in the southern province of Basra, Amidi said.
The preliminary agreements will be sent to the Council of Ministers, headed by Prime Minister Haider al-Abadi, for approval before the final signing, Amidi said.
Meanwhile, Iraqi oil minister Jabbar Luaibi said that Iraq has ambitious plans to develop and explore oil and gas fields near the border to increase oil and gas reserves in the country.
He said that five more blocks of oil and gas fields will be put up for sale in the near future, noting that the production of six blocks is expected to reach an average of 500,000 barrels per day.
Earlier, Iraq invited foreign energy companies to participate in bidding for the exploration and development of 11 oil and gas blocks near the borders with Iran and Kuwait.
On April 26, the auctions resulted in awarding licenses for the exploration and drilling of oil and gas in six blocks in the eastern and southern Iraq to Crescent company, UAE, and two Chinese firms.
April auction became the fifth in Iraq after in 2009 the country opened the oil and gas sector for foreign investments.
The Iraqi economy is largely dependent on oil, which accounts for more than 90% of its revenues. The country wants to increase oil production to over 5 million barrels per day from the current 4.35 million barrels per day.
In early 2017, it was announced that Iraq’s proven oil reserves had increased to 153 billion barrels, although the previous estimate was 143 billion barrels.