Iraq
has
decided to expel state-run Turkish Petroleum Corp., or TPAO, from an
exploration oil block in southern
Iraq
, a
senior Iraqi official said Wednesday.
Officials in
Baghdad
said
the government's decision was due to a souring in political relations between
Baghdad
and
Ankara
.
Abdul Mahdy al-Amedi, head of the oil ministry's petroleum contracts and
licensing directorate, said the decision to expel TPAO was taken by the Iraqi
cabinet.
"We have asked Kuwait Energy to acquire the TPAO stake in the
project," said Mr. Amedi.
Kuwait Energy and its partners TPAO and UAE's Dragon Oil PLC (DRS.DB) won the
contract to explore for oil and gas in block 9 in the
Basra
governorate, southern
Iraq
, at
an auction in May this year.
With the departure of TPAO, Kuwait Energy's stake is now 70% and Dragon owns
the remaining 30%.
TPAO, however, will maintain its other oil and gas field contracts signed with
Baghdad
in
2010 in 2011.
The
project at issue hasn't been finalized yet.