TOKYO, April 26 (KUNA) -- Japan's Toyo Engineering Corp. said it has signed a technological cooperation agreement with Iraq's South Oil Co. for upstream projects, marking the first implementation of an alliance-type contract for Iraqi state owned companies.

The agreement covers all oil fields and related facilities that South Oil is responsible for in the south of Iraq, Japan's major plant engineering firm said in a statement. Under the deal, Toyo will provide comprehensive technical services in order to expedite the smooth, timely and economic implementation of South Oil's upstream projects on a long term basis and according to the Iraqi firm's request.

"In tandem with the Japanese government's activities relating to Iraq reconstruction, Toyo has been promoting discussions for both upstream and downstream businesses, not only with South Oil, but also the other state owned companies under control of the Iraq Ministry of Oil," the Tokyo-based company said.

The firm has broad and worldwide experience in the provision of providing technical services, having concluded deals with more than 10 oil and gas companies, starting from the first such agreement with a joint venture between Kuwait Oil Company and Saudi Aramco.

According to BP Plc, Iraq's proven oil reserves as of early 2011 amounted to 115 billion barrels.