Oil Diplomacy Editor
LOS ANGELES, Sept. 3 -- Iraq has approved a $3 billion contract awarded last week by the ministry of oil to Chinese National Petroleum Co. (CNPC) to develop and produce Adhab oil field.
The cabinet of ministers sanctioned the contract between "Northern Oil Co. and a Chinese company" to develop and produce the field, "according to terms initialed by both sides," said Iraqi government spokesman Ali al-Dabbagh.
Oil Minister Hussain al-Shahristani, who last week announced renegotiated terms of the oil agreement originally signed with CNPC in 1997, said he would summon Chinese officials to Baghdad to sign the documents later this month.
Under the renewed contract, CNPC will provide technical advisers, oil workers, and equipment to increase production to 110,000 b/d, up from the originally agreed 90,000 b/d, with first output expected in 3 years' time (OGJ Online, Aug. 30, 2008).
Contact Eric Watkins at email@example.com.