China close to oil deal with Iraq
7 March 2008
China and Iraq could soon sign a US$1.2 billion oil deal that was cancelled after the 2003 US invasion, AP reported. The government of Saddam Hussein made an agreement with China National Petroleum Corp (CNPC) to develop the al-Ahdab oil field, in violation of UN sanctions, which bar direct business with the Iraqi oil industry. Iraq and China began talks on reviving the deal in October 2006, because the Chinese were waiting for sanctions to be lifted after the US removed Saddam. An anonymous official told AP that the final round of negotiations will be held in April. The oil field could produce 115,000 barrels a day. The Chinese Foreign Ministry said it had no information about the discussions, while CNPC executives could not be reached for comment.