Contract to develop Iraqi oil field revived
25 June 2007
Iraq has revived a 1997 contract signed with China National Petroleum Corporation, the country's largest oil company, to develop the al-Ahdab oil field in Iraq, the Financial Times reported. The oil field, valued at US$1.2 billion, had an estimated pre-war capacity of 90,000 barrels a day. The revised commercial terms and price details are still pending, and both sides are to reach an agreement within one month. The decision to revive the contract come after a weeklong visit to China by Iraqi President Jalal Talabani with President Hu Jintao and Premier Wen Jiabao resulting in the signing of agreements on such areas as oil, trade, commerce, education. During the visit China also mentioned it would cancel a "large margin" of Iraqi debt estimated at US$8 billion.