Azerbaijan, Baku, Nov 12 /Trend A.Taghiyeva /
The decision to deprive the Turkish Petroleum Corporation, TPAO of licenses to explore the Block 9 oil fields provided by Iraq earlier during the fourth round of licence 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 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 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 favour of Kuwait Energy, the source said.
Last week Iraq deprived the Turkish Petroleum Corporation TPAO of a licence for the exploration of the field in the block 9, which was earlier issued within the fourth round of issue of licenses to foreign companies to explore for hydrocarbons.
TPAO shares will be transferred to the Kuwait Energy Company which is in the consortium led by the Turkish TPAO. This takes Kuwait Energy shares to 70 per cent leaving those of another consortium member Dragon Oil at 30 per cent.
A consortium consisting of the Turkish TPAO, Kuwait Energy and Arab Dragon oil has received a licence to explore for oil in the tender on granting licenses to foreign companies to explore for hydrocarbons, held in Iraq on May 30-31.
A licence allowing the consortium to develop the field within 20 years was granted for the development of oil fields in Basra Province over 900 square kilometres.