Global Processing

Chinese-Turkish Consortium Seals Iraq Oil Deal

May 17, 2010
A China-led consortium sealed a deal with Iraq to develop a prized cluster of three oil fields in the country''s south reports the Associated Press. The agreement brings to 11 the number of deals signed with international oil companies since bidding began in June. Four of those deals and one reached in 2008 involve Chinese companies, reflecting Beijing''s drive to seek new energy sources for its growing economy. The state-run China National Offshore Oil Corp. and its partner, the state-run Turkish Petroleum Corporation, will develop the Missan oil fields. The consortium plans to increase the output in six years to 450,000 barrels a day from Missan''s current daily production of nearly 100,000 barrels. The consortium will get $2.30 for each barrel produced under the 20-year deal. The three-field cluster is located near the city of Amarah in southern Iraq and holds over 2.6 billion barrels in reserves. The latest deal is a step forward in Iraq''s efforts to develop its dilapidated oil industry and bring in sorely needed cash for reconstruction after years of war, sanctions and neglect.