UK Firm to Explore and Produce Oil In Kurdistan

U.K. listed independent oil company Gulf Keystone Petroleum Ltd. has said it has signed a production sharing contract to explore and produce oil in Iraqi Kurdistan along with a subsidiary of Hungary's MOL Nyrt.

The Shaikan Block covers an area of 283 square kilometers and is described by the Kurdish Regional Government as a low exploration risk area.

A subsidiary of Gulf Keystone will operate and own 75% in the block. Kalegran will have 20% and Texas Keystone 5%.

In addition, MOL was granted operatorship and a 80% stake in the Akri-Bijeel Block, with the Gulf Keystone unit owning the remaining 20%.