Reuters reported that Iraqi cabinet has approved three oil and gas contracts awarded to foreign firms in a May auction as part of the country's drive to attract investment to develop its energy sector.

The government spokesman said that Iraq, a member of OPEC is expected to be the world's biggest source of new oil supplies over the next few years. It has signed contracts with international oil companies and plans to open up more bidding rounds for additional oil and gas blocks.

Mr Ali al Dabbagh spokesman said that cabinet approved an initial gas exploration contract with Pakistan Petroleum for gas block 8 and another deal with a group led by Lukoil to develop Iraq's oil block 10. It also approved an initial deal with Russia's Bashneft to develop Iraq's oil block 12 but decided to delay approval of a contract signed with a consortium led by Kuwait Energy for oil block 9.

Mr Dabbagh said that cabinet decided to delay approval of a contract for block 9 until the oil ministry completes some of its procedures. Contracts approved by cabinet are ready for final signing by Iraq's oil ministry.

Source - Reuters

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