Iraq signs contract with Chinese oil firm for seismic survey in 2 oil blocks

Iraq on Thursday signed a contract with the China National Offshore Oil Corporation (CNOOC) to conduct seismic survey for two oil exploration blocks in Iraq's southern province of Basra to boost oil and gas reserves, Trend reported citing Xinhua.

Iraq's Minister of Oil Thamir al-Ghadban stressed during a signing ceremony that the ministry is implementing its strategic plans to develop and rehabilitate exploring blocks to boost oil and gas reserves, according to a statement by the ministry.

Al-Ghadban said that one of the two exploration blocks is offshore in the Iraqi territorial water, and the other one is onshore near the town of al-Faw near the border with Iran.

For his part, Nashwan Nouri, director general of the state-owned Oil Explorations Company, said that his company will carry out the seismic survey for the ground block near al-Faw, while the CNOOC will carry out the survey for the offshore block, the statement said.

Iraq held an auction in 2018 for international energy companies to bid for 11 oil and gas blocks near the borders with Iran and Kuwait, and later issued six licenses to foreign firms to explore and drill.

Iraq's economy relies heavily on crude oil exports, which account for more than 90 percent of the country's revenues.

In 2017, Iraq announced that its proven oil reserves increased to 153 billion barrels from a previously estimated 143.1 billion barrels.