Kamis, Agustus 28, 2008

Iraq signs $3billion oil service contract with Chinese firm

Iraq struck $3bn oil services contract with China's state-owned oil firm CNPC, an oil ministry spokesman said on Thursday.

Earlier the Iraqi oil minister Hussein al-Shristani said the two parties renegotiated a 1997 deal to pump oil from the Ahdab oilfield in Wassit, 180 km south Baghdad.

Oil ministry spokesman Assim Jihad pointed out “Under the new deal, output from the oilfield will be 25,000 barrels per day, out of the expected 125,000 barrels, would supply fuel for al-Zubaidiya thermal plant, which is set to begin generating electricty in three years”.

“The deal is the first major oil contract with a foreign firm since the US-led war in Iraq,the spokesman noted.

As security improves, Iraq - which has some of the biggest oil reserves in the Middle East - is trying to bring in foreign oil companies to boost crude output.

It needs billions of dollars of investment after years of war and sanctions.

Other foreign oil companies, such as Royal Dutch Shell and Exxon Mobil, are also negotiating deals with the Iraqi government.

The Iraq government said its aim is to increase crude oil production from the current 2.5m barrels per day to 4.5m by 2013.

Iraqi oil experts put the discovered reserve for al-Ahdab field at 225 million, which is considred one of the largest in Iraq.

(Voices of Iraq)


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