Contract with CNPC, BP to develop Rumaila oilfield

BAGHDAD / IraqiNews.com: The Iraqi Ministry of Oil on Tuesday will sign a contact with a BP-led consortium to develop the Rumaila oilfield, according to a ministry spokesperson. “On Tuesday, the Oil Ministry will sign a contract with a consortium of the China National Petroleum Corporation (CNPC) and British Petroleum (BP) to develop the field,” Aasem Jihad told IraqiNews.com news agency. The Iraqi government had approved the consortium’s offer to develop the giant field in the south. Under the contract, the two companies are paid a per barrel price for production over a minimum target level. BP and CNPC had bid $3.99 per barrel, but slashed their price to the $2 per barrel payment sought by the Iraqi Ministry of Oil. The first international oil licensing round included six oilfields, which provide more than 80 percent of Iraq’s total production of oil. SS (P) 3