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Hungary's MOL signs production sharing contract in northern Iraq UPDATE

(Updates with more detail) BUDAPEST (Thomson Financial) - Hungarian oil and gas company MOL Nyrt says it has signed a production sharing contract for an oil field in northern Iraq.

MOL says it will carry out a series of seismic tests in the area and has the option of drilling an optional exploration well.

The 889 sq km Akri Bijeel block is situated about 50 km north of Erbil, the capital of the Kurdistan region of Iraq. The deal was signed with the Kurdistan Regional Government of Iraq (KRG).

MOL says the government, which will retain a 20 pct share in the block, is capable of guaranteeing security in the region. MOL will finance all the exploration costs.

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