Dublin-headquartered oil and gas firm Petroceltic International has acquired a 20 per cent interest in two exploration blocks in Iraq.

Hess Middle East will operate the Dinarta and Shakrok blocks, which are in the Kurdistan region of the country, on Petroceltic’s behalf.

Production sharing contracts have been agreed with the Kurdistan regional government in respect of the two blocks. Petroceltic’s financial commitment during the first phase of the contracts is expected to be about $72 million (€49.8 million), most of which will be incurred over the next six months.

Petroceltic chief executive Brian O’Cathain described the two blocks as "highly prospective" and said they would add further high-impact exploration potential to the company’s portfolio and would complement its ongoing activities in Algeria and Italy.

“While significant discoveries have already been made, the Kurdistan region of Iraq remains a vastly under-explored area with huge potential,” he said.