Marathon signs Kurdistan oil contracts

Marathon Oil has taken a stake in four exploration blocks in Kurdistan, marking the American oil company's first entry into Iraq.

The explorer signed production sharing contracts to operate and take 80 per cent ownership in two open blocks north-east of Erbil. The Kurdistan regional government will hold a 20 per cent interest.

The company has also taken working interests in two blocks located north-northwest of Erbil.

Marathon, based in Houston, will open and staff an office in the region, a spokeswoman said, declining to provide additional details about the deal.

Marathon is the fourth-largest United States-based oil company and the country's fifth largest refiner. The company also has operations in Angola, Canada, Equatorial Guinea, Indonesia and Libya.