The statement reported by Agence France-Presse (AFP), briefed by “Shafaq News” that “sharing production contract was signed with KRG officials to carry out oil exploration in Qara Dagh field that extends southern the three provinces of the region”.

The field extends over an area of 680 square kilometers, according to the statement.

Chevron has signed a contract for exploration, is the third in January that was preceded by two contracts in July 2012.

Baghdad banned Chevron last year from working in other areas in Iraq, outside Kurdistan after its contract with the region.

The dispute over oil contracts is considered one of a series of disagreements between Baghdad and Erbil. As diplomats and analysts say that the issues that were unresolved are among the greatest threats to Iraq's stability in the long term.