By John Lee.
Russia's Stroytransgaz has signed a preliminary contract for the exploration, development and production of Block 17, in Anbar province.
At a signing ceremony in Wednesday, Deputy Prime Minister for Energy Affairs and Oil Minister Thamer Abbas Ghadhban said that preliminary studies and information indicate the existence of oil reserves ranging between 2 and 4 billion barrels oil equivalent of gas. The block measures 12,000 square kilometers.
The Director General of Petroleum Contracts and Licensing Department, Abdul Mahdi Al-Amidi, said that the contract commits the company to build a residential complex in Anbar province in addition to the development of infrastructure and services for the province, with an estimated value of $100 million dollars.
Stroytransgaz was sanctioned by the US Department of the Treasury's Office of Foreign Assets Control (OFAC) in 2014 in relation to Russian activity in Ukraine.
The deal needs final approval by Iraq's Council of Ministers.
(Sources: Iraqi Oil Ministry, OFAC)