Baghdad, October 18: Iraq’s cabinet has approved a deal with two foreign firms to develop a vast oilfield in the south of the country, the first major oilfield deal signed since the US invasion.
The Iraqi government said Saturday it has ratified a contract with a consortium of British BP and CNPC of China to develop a 17bn barrel oilfield of Rumaila near Basra.
The project aims to considerably increase output at the super-giant oilfield – raising it by 2m barrels a day.
The deal is considered as significant achievement for a country that struggles to attract foreign investments in its oil industries.
Iraq has the world’s third largest oil reserves, but the current daily production of 2.4m barrels a day is much less that its potential due to a lack of investment because of insurgent attack risks.
—–Agencies