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Iraqi Oil Contracts Reward Kuwait, Punish Turkey

The signing of the latest round of oil contracts in Iraq has been a victory for the Iraq-Kuwait detente, but comes at the cost of deteriorating relations with Turkey, writes Omar al-Shaher.
Iraq Oil Minister Abdul Kareem Luaibi addresses a news conference during the fourth licensing round for exploration blocks at the Oil Ministry's headquarters in Baghdad May 30, 2012. A consortium led by Kuwait Energy and partners Turkey's TPAO and Dubai-based Dragon Oil secured a deal to explore Block 9, a mainly oil area in southern Basra province. REUTERS/Saad Shalash (IRAQ - Tags: BUSINESS POLITICS ENERGY) - RTR32THT
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Iraq has signed a final service contract with a consortium of two gulf companies, one of which is Kuwaiti, to develop the ninth of 12 exploration blocks included in the fourth round of licenses. The signing has completely ruled out a Turkish company that was part of the initial agreement in this investment.

While this contract reflects the improved economic relations between Iraq and Kuwait following years of animosity, it also shows the depth of the dispute between Baghdad and Ankara.

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