The Chinese oil company CNOOC has signed a contract with the Iraqi state company Midland Oil Company for the exploration, development, and production of oil (EDPC) in an area called Block 7. This was reported by the international news agency of Kazakhstan, “Kazinform”, citing Reuters.
The Block 7 oil field covers an area of 6,300 square kilometers and is located in the Diwaniyah province of central Iraq.
According to the terms of the contract, CNOOC, the third-largest oil company in China, will fully control and manage this 6,300 square-kilometer area through its subsidiary, CNOOC Africa Holding Ltd.
The contract is part of Iraq's new strategy aimed at attracting foreign investors by offering them a share in the profits from oil extraction rather than just paying for their services.
The initial exploration phase is set for three years.
CNOOC has already been operating in Iraq, working on the development of a field in the Maysan province in the south of the country.
In August, a top executive from CNOOC stated that Block 7 could lead to a significant discovery of oil fields.
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