ByHASSAN HAFIDH
Iraq signed a final deal Tuesday with U.K. oil major BP PLC and China National Petroleum Corp. to develop Rumaila, its largest producing oil field, said Iraqi Oil Minister Hussein al-Shahristani.
The 20-year service contract for Rumaila,the only deal agreed at the country's first post-war licensing auction in June, is part of the Iraqi Oil Ministry's strategy to boost production and rake in more desperately needed cash to revive the country's war-hit infrastructure.
BP and CNPC have agreed to receive a fixed fee of $2 for each additional barrel of oil produced at Rumaila. They are expected to almost triple production at the field to 2.85 million barrels a day, from current production of 1.05 million barrels a day.
Mr. Shahristani said that BP and CNPC would invest up to $50 billion to develop Rumaila.
However, BP Chief Executive Tony Hawyard, who was present at the signing, told reporters the two companies are expected to invest up to $15 billion.
http://online.wsj.com/article/SB10001424052748703740004574513192925257848.html
Iraq signed a final deal Tuesday with U.K. oil major BP PLC and China National Petroleum Corp. to develop Rumaila, its largest producing oil field, said Iraqi Oil Minister Hussein al-Shahristani.
The 20-year service contract for Rumaila,the only deal agreed at the country's first post-war licensing auction in June, is part of the Iraqi Oil Ministry's strategy to boost production and rake in more desperately needed cash to revive the country's war-hit infrastructure.
BP and CNPC have agreed to receive a fixed fee of $2 for each additional barrel of oil produced at Rumaila. They are expected to almost triple production at the field to 2.85 million barrels a day, from current production of 1.05 million barrels a day.
Mr. Shahristani said that BP and CNPC would invest up to $50 billion to develop Rumaila.
However, BP Chief Executive Tony Hawyard, who was present at the signing, told reporters the two companies are expected to invest up to $15 billion.
http://online.wsj.com/article/SB10001424052748703740004574513192925257848.html