Iraq signs gas exploration deal with Pakistan Petroleum – Alfalah Securities Limited

Karachi, July 16, 2012 (PPI-OT): Iraq has signed a gas exploration deal with Pakistan Petroleum Ltd. (PPL) under which the first of three successive contracts will be aimed at exploring country’s oil and gas reserves.

According to Alfalah Securities Limited, other deals will be signed on Monday and Tuesday with consortia led by Kuwait Energy and Russia’s Lukoil and all these agreements will be sent to the cabinet for approval, and then the final contract will be signed. PPL has won a contract for a 6,000 sq.km block which has probability of available gas reserves and is located in the central Iraqi provinces of Diyala and Wasit. PPL has agreed to a remuneration fee of USD 5.38 per barrel of oil-equivalent eventually extracted. Iraq has proven reserves of 143.1 billion barrels of oil and 111.9 tcf of gas which are among the highest such deposits in the world. Alfalah Securities Limited recommends a buy on PPL with revised TP of PKR 253.0 offering an upside potential of 31%.