BP, China oil firm to control development of major new Iraq oil field
BAGHDAD Ñ The Iraqi Oil Ministry has signed an agreement with British Petroleum
and China's CNPC to develop the Rumeila oil field.
Rumeila, with a current
capacity of 1.1 million barrels per day and reserves of nearly 17 billion
barrels, is by far one of Iraq's largest sources of crude oil.
Under the
project, the two companies would increase output to 2.85 million barrels per
day over the next 20 years.
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[On Oct. 12, the autonomous Kurdish Regional Government, in its latest
rift with Baghdad, has announced the suspension of crude oil exports, Middle East Newsline reported. KRG
said the renewal of exports would take place after the Iraqi Oil Ministry
pays foreign contractors for the oil they produced and transported through
Iraqi pipelines. KRG has pumped all of its oil through pipelines controlled
by the Oil Ministry in Baghdad.]
"The contract will be referred to the Cabinet for approval, after which
the Oil Ministry will hold a ceremony to announce the beginning of work by
the two companies," Oil Ministry spokesman Asim Jihad said on Oct. 8.
Under the agreement, BP would acquire a 38 percent share in the project,
with CNPC another 37 percent. The state-owned State Oil Marketing
Organization would hold the remaining minority share.