MOL in oil production contract in north Iraq, partners with Gulf Keystone UPDATE

(Recasts, updates with detail of second contract with Gulf Keystone) 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, while also entering into a partnership with the UK's Gulf Keystone Petroleum for further fields in the region.

Texas Keystone is also a partner in the project.

MOL signed the first agreement with the government of the Kurdistan region of northern Iraq for an 80 pct production share of the Akri Bijeel field situated about 50 km north of Erbil, the regional capital.

Following this, MOL entered a further production sharing agreement with Gulf Keystone in which it will swap a 20 pct share of Akri Bijeel for a 16 pct participation share of the UK company's neighbouring Shaikan block.

The projects will involve seismic test with an option to build exploration wells.

MOL says the local government, which will retain shares in both fields, is capable of guaranteeing security in the region. ek1/ajb/ek1/ajb COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

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