Iraq and China have agreed the terms of a $3 billion oil service contract, Iraq's oil minister says, announcing the first major oil contract with a foreign firm since the fall of Saddam Hussein.
The deal means
"Finally we have reached an agreement," Shahristani said after clinching the deal.
But with high oil prices and strong competition for access to some of the world's
cheapest oil to produce,
Under the revised contract, Adhab will produce 110,000 barrels per day (bpd), up from the previous target of 90,000 bpd, Shahristani said.
First output would come in three years, and the field should pump for 20 years, he said.
CNPC would own 75 per cent of a joint venture to be set up for the contract, while
The deal was pending the final seal from both countries' governments.
"The Chinese company undertakes to carry out the design and construction of the Nurobod" power station in eastern
The deal was signed on the sidelines of a visit by Hu Jintao, the Chinese president, aimed at bolstering economic ties between the two neighbours.
The trade turnover between
"We only have about 10 months left," he said. "It seems more and more unlikely that these technical service contracts can be implemented now in such a short remaining time."
The firms that have been negotiating deals are Royal Dutch Shell; Shell in partnership with BHP
A smaller consortium of Anadarko, Vitol and Dome had negotiated for another deal but Anadarko walked away this month.
A long-delayed draft oil law to set the framework for foreign investment was unlikely to be approved in parliament in the near-future, Shahristani said.
"Different parliamentary blocs still have serious differences about the law," he said. "I have not heard anything new from the parliament to make me expect that the law will be passed any time soon."
Disputes with the regional government in
There had been no progress in resolving differences between
Source: Al Jazeera