BAGHDAD — The Oil Ministry appears set to award China Iraq's first oil development contract since 2003.

The Oil Ministry stipulated that any contract with China would depend on the fulfillment of its obligation to the former Saddam Hussein regime. The ministry said the proposed deal would be discussed with China in a visit by Oil Minister Hussein Al Shahristani, Middle East Newsline reported.

"The minister will discuss with Chinese companies fulfilling previous contracts signed with the former regime," ministry spokesman Asim Jihad said.

U.S. oil majors have refused to bid for projects in Iraq because of the absence of legislation that would guarantee their investments. But the Oil Ministry has assessed that China National Petroleum Corp and Norinco would be ready to develop the 90,000-barrel per day Ahdab field in south-central Iraq in a $700 million project.