Iraq Makes $3 Billion Oil Deal With China
Posted on: Saturday, 30 August 2008, 15:00 CDT
Iraqi officials say they have signed a $3 billion deal with China's national oil company to develop an area in the southern part of the Middle East nation.
The contract with China National Petroleum Corp. calls for 125,000 barrels of oil daily and is Iraq's first major contract with a foreign operation since the fall of Saddam Hussein, CNN reported Saturday.
Work could begin within a few months with the Chinese company providing technical advisers, oil workers and equipment to develop the al-Ahdab oil field in Wasit province over a 20-year period, Oil Ministry spokesman Assim Jihad said.
The Chinese deal is a "service contract" under which China National is only paid for its services, Jihad said. He added that Iraq has provided "security guarantees" for the Chinese oil company as it would for other foreign companies hoping to work in Iraq's oil fields. The Oil Ministry reportedly is negotiating short-term, no-bid contracts with U.S. and European oil companies that include Exxon Mobil Corp., Royal Dutch Shell, Total SA, Chevron Corp. and British Petroleum.
Iraq's estimated oil reserves of 115 billion barrels tie it with Iran for the second spot in the world behind Saudi Arabia's 264 billion barrels.
Source: United Press International
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