CNPC allowed to participate in Iraqi oilfield exploration
China National Petroleum Corp (CNPC), parent of the country’s largest oil and gas producer PetroChina<601857><857>, has signed a 20-year oil service deal with Iraqi state-owned oil company North Oil to help develop the al-Ahdab oilfield in eastern Iraq’s Wasit province, according to sources.
Iraqi Oil Minister Hussein al-Shahristani and CNPC president Jiang Jiemin attended the signing ceremony in Baghdad.
Under the US$2.9 billion deal, CNPC is expected to help Iraq develop the al-Ahdab oilfield which is designed to have a daily production capacity of 110,000 barrels, in a bid to boost Iraqi crude oil production and secure enough fuel for electric power generation. The produced oil will mainly be supplied to the Zubaiduyah power plant, and the surplus will go for export.
In June 1996, CNPC had inked their first oil deal with Iraq’s Saddam Hussein government. However, it was postponed indefinitely after the UN imposed economic sanctions on the country and the U.S.-led invasion in 2003.
Tags: CNPC, PetroChina, Petroleum
With the improving security situation in Iraq it is likely that oil exploration and output will increase going forward. As the second largest consumer of oil in the world it is understadable that China wishes to secure stable sources of crude oil to drive its economy forward.