BAGHDAD: Iraq’s Oil Ministry signed a final deal with China’s CNOOC and state-run Turkish Petroleum Corporation (TPAO) on Monday to develop the 2.5-billion-barrel Maysan oilfield complex.
The deal is the eleventh of a series signed since last year with international oil companies to develop the war-damaged country’s vast oil reserves, and which have the potential to vault Iraq into second place in the league of oil producing nations.
If all the agreements work out, Iraq could have crude production capacity of 12 million barrels per day, close to top producer Saudi Arabia, in six to seven years.
China’s Sinochem was originally partnered with CNOOC in an unsuccessful bid for the three Maysan fields in Iraq’s first auction of oilfield contracts last year.
But it pulled out when CNOOC decided to reconsider and accept the government’s proposed remuneration fee of $2.30 for every additional barrel of oil produced, and TPAO stepped in.
CNOOC and TPAO set a plateau target for the oilfields at 450,000 barrels per day (bpd) after six years.
CNOOC will hold an 85 percent stake in the foreign companies’ part of the venture, while TPAO will have 15 percent, officials said. An Iraqi state oil company will hold a 25 percent stake in the total partnership.