By John Lee.

Kuwait Energy and Dragon Oil have signed the contract giving them the rights to explore and develop oil block 9 in Basra province.

Reuters reports that Kuwait Energy will be the operator with a 70 percent working interest, and Dragon Oil will hold 30 percent.

Speaking at the signing ceremony, Kuwait Energy’s chief executive Manssour Aboukhamseen said:

“Block 9 contains substantial reserves of oil and gas, and we have committed (that) $125 million will be invested at the initial stage of exploration over the next two years.“

Oil Minister Abdul Kareem Luaibi [Elaibi] said that the Ministry is now preparing for a fifth bidding round for the exploration and development of new blocks across Iraq.