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Iraq
China and Iraq sign oil mega-deal
2008-09-05
China National Petroleum Corporation (CNPC), Asia's biggest oil and gas company, has signed a three billion dollar agreement to develop and operate Iraq's al Ahdab oil field under a 20-year service contract.

The agreement is the first major oil deal reached between Iraq, which has about one third of the world's largest reserves, and a foreign firm.

Iraq's Oil Minister Hussain al-Shahristani has said that time was running out for big western firms to conclude the deals they have been negotiating for many years.

The Minister said that the two sides had renegotiated the terms of an old deal which was signed back in 1997 concerning the development of the Adhab oil field.

The contract has been changed from an oil production sharing agreement into a set-fee service deal.

Production from the oilfield will be raised to 110,000 barrels a day (b/d) from 90,000 b/d as provided in the initial contract.

Currently, Iraq is believed to be pumping 2.4 million b/d and plans to increase output by 500,000 b/d before the end of next year.
Posted by:Fred

#8  I'll believe there's progress when our oil imports are near Zero(There'll always be some "Specialty" oils imported)
Posted by: Redneck Jim   2008-09-05 13:38  

#7  What is the Chinese track record in pumping oil?
Posted by: Nimble Spemble   2008-09-05 11:45  

#6  Anything that gets more oil out into the market to counter the growing demands created by not only China but also India, is a good thing. The sooner we develop our own domestic resources, the sooner others will have to pick up the full ticket to get the stuff on their own dime.
Posted by: Procopius2k   2008-09-05 11:30  

#5  We do the heavy lifting and the Chicoms get the oil. Nice work if you can get it. All the more reason for energy independence from the ME.
Posted by: Alaska Paul   2008-09-05 08:29  

#4  This is NOT "healthy" if it is a trend. That's all we need -- having the Chicoms running the oil production business for 20 years. They can strangle us anytime they want to by walking off the job at the locations that provide oil to us.
Posted by: Darrell   2008-09-05 07:32  

#3  This is a much better deal for Iraq than the one Saddam Hussein originally signed. China has to invest more into developing the field, and gets paid just for that, rather than taking half of what came out of the ground.
Posted by: trailing wife   2008-09-05 04:50  

#2  I think this is healthy in a way. Gives the Chicoms a vested interest in the stability of Iraq.
Posted by: Classical_Liberal   2008-09-05 03:55  

#1  We'll know who to give Iran to when the time comes.
Posted by: gorb   2008-09-05 01:32  

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