Reuters reports that the Iraqi government has approved the exploration, development and production contract for Block 10 in the south of the country.
Russia's LUKoil, which already has an interest in the giant West Qurna-2 oilfield, won the deal for the 5,500-square-kilometer Block 10 in Muthanna and Dhi Qar provinces in Iraq's 4th round energy auction, along with partner Inpex Corp of Japan.
Lukoil has 60 percent of Block 10, while Inpex holds the remaining 40 percent. The group will be paid $5.99 for each barrel of oil equivalent it finds.
The company said the development of Block 10 will result in a synergistic effect due to the block's location a mere 100 kilometres away from the West Qurna-2 field.