CNPC concludes oil deal with Iraqi government

The China National Petroleum Company (CNPC) has concluded a $3bn, 20-year oil services contract with the Iraqi government to pump oil from the Ahdab oilfield.

The deal represents a renegotiation of a 1997 contract but will see the company pump 110,000 barrels per day from the field, up from 90,000 agreed under the original contract.

The CNPC deal is the first with a foreign oil company concluded by the government, with a slew of oil majors also in negotiations, including Shell and Exxon Mobil. Shell has also recently concluded a $4bn deal with the Iraqi government to help tap the country’s gas reserves.

Iraq’s government is aiming to almost double the country’s oil production from the current output of 2.5m barrels per day to 4.5m by 2013, as security continues to improve in the country.

Production at the Ahdab field, which is in Wasit province, 160km south of Baghdad, will begin in three years. The deal will see CNPC work with Iraq’s Northern Oil Company in a joint venture 75% owned by CNPC.

Russian oil major Lukoil, meanwhile, is bidding to re-open talks on a Saddam Hussein-era exploration deal covering the West Qurna oil field, while Crescent Petroleum and Dana Gas...

Full contents
Case study archive
Subscribe now
Request sample copy
Advertise

Click here for an RSS feed for Managing Partner

Copyright ©1994-2005 Ark Group Ltd All rights reserved. No part of this site or the publications described herein
may be reproduced in any form without the permission of Ark Conferences Ltd, Registered in England, No. 2931372.