(MENAFN) Iraqi oil ministry's director of contracts directorate, Mahdy al-Ameedi, stated that the ministry has endorsed an oil agreement with a consortium led by Kuwait Energy to acquire additional shares in exploration block 9, reported Arabian Business.
Al-Ameedi said that the Kuwaiti side would acquire Turkey's state-owned TPAO's shares in the block, as the Iraqi cabinet decided to expel the latter from the project due to deteriorating diplomatic ties with Ankara.
Kuwait Energy, which already held a 30-percent stake in the block, raised its shareholding in the project to 70 percent, whereas Dubai's Dragon Oil PLC will own a 30-percent stake.
He added that the agreement, which would be sealed on January 27, grants the consortium rights to explore and develop oil block 9, located in the country's southern Basra province.
It is worth noting that in May 2012, a small number of international firms won bids at Iraq's fourth energy auction, which had a poor showing due to tough contract conditions drawn up by the country.