Iraq approves controversial Sinopec oil rights deal

Iraq has approved a deal that would see China's Sinopec Group acquire controversial oil rights in northern Iraq through its purchase of Swiss oil giant Addax Petroleum, Chinese media said Wednesday.

Iraq has now recognised Addax's development of the Taq Taq oilfield in its northern Kurdish region, after first threatening to blacklist Sinopec for pursuing rights there without consulting Baghdad, the China Business News reported, citing an unnamed Sinopec executive.

Sinopec, Asia's largest refiner, agreed to purchase Addax in June for 7.2 billion dollars in China's largest-ever overseas acquisition.