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Iraqi cabinet revokes TPAO oil exploration license: source

12 November 2012 18:16 (UTC+04:00)
Iraqi cabinet revokes TPAO oil exploration license: source

The decision to deprive the state-owned Turkish Petroleum Corporation (TPAO) of licenses to explore the Block 9 oil fields provided by Iraq earlier during the fourth round of license issuance to foreign companies to explore for hydrocarbons, has been made directly by the Cabinet of Ministers, a source in the government of Iraq told Trend news agency on Monday.

The source noted that such decisions are usually made by the Ministry of Oil. However, in the case of TPAO, the decision came directly from the cabinet without interference from the oil ministry.

The source said any of the parties will not be affected by the revocation, because the process of investing has not started yet.

TPAO itself gave up its share in favor of the Kuwait Energy Company, the source said.

TPAO shares will be transferred to Kuwait Energy which is in the consortium led by the Turkish corporation. This takes Kuwait Energy shares to 70 per cent leaving those of another consortium member Arab Dragon Oil at 30 per cent.

A consortium consisting of TPAO, Kuwait Energy and Dragon Oil has received a license in the tender on granting licenses to foreign companies to explore for hydrocarbons, held in Iraq late May.

The 20 year-license was granted to the consortium for the development of oil fields in Basra Province over 900 square kilometers.

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