Iraq reaches deal with Zhenhua

Source:Reuters Published: 2017/12/25 22:23:40

Iraq has reached an initial deal with China's State-run Zhenhua Oil to develop the southern portion of the East Baghdad oilfield, Iraq's oil ministry spokesman said on Sunday.

Iraq is seeking the help of Zhenhua Oil to increase production from the field to 40,000 barrels per day (bpd) within five years as of the start of the development operations, Asim Jihad said in a statement.

Iraqi oil officials have estimated the East Baghdad field, a "super giant" with about 8 billion barrels of crude reserves, has the potential to produce 120,000 bpd.

Under the initial deal with Zhenhua Oil, the Chinese company will commit to building an "oil residential complex", the statement said.

Posted in: COMPANIES

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