America's Chevron and France’s Total have boosted their presence in the Kurdistan Region of Iraq with Chevron acquiring the right to explore the Qara Dagh field and Total buying the majority stake in the Baranan block.
Total will acquire 80 per cent of the Baranan block, while the remaining 20 per cent will be held by the Kurdistan Regional Government (KRG). It is Total’s fourth asset in the Kurdistan Region of Iraq.
The block, also known as K9, was held by Talisman Energy until it decided to sell the acreage last year.
"This participation in an operated exploration block was contemplated at the time Total made its move in Kurdistan during the summer 2012," Total said in a statement sent to Reuters.
In 2012, Total bought a 35 per cent stake in the Harir and Safen exploration blocks in the Kurdistan Region of Iraq. The company also holds a minority interest in the Taza exploration block in the province of Suleimaniya.
Chevron announced that it had completed a transaction to acquire the right to explore the Qara Dagh field, marking its third asset in the Kurdistan Region of Iraq.
Back in January, Chevron was awarded the oil block that lies southeast of Erbil and covers an area of about 861 sq km.
"Chevron will acquire an interest in and operationship of the Qara Dagh block production sharing contract from the Kurdistan Regional Government," the company said in a statement.
Chevron has two existing oil licenses in the region, which were acquired in July last year from Indian conglomerate Reliance Industries.