The Iraqi oil ministry has signed a deal with Britain's BP and China's CNPC to develop the Rumaila oil field, in southern Iraq, which contains perhaps one-sixth of Iraq's oil reserves.
The deal was initially agreed to back in June, during the ministry's less-than-successful oil auction. The companies will receive $2 per barrel to operate the oil field; they're expected to boost production to 2.8 million barrels per day, almost tripling Rumaila's current output.
The federal government still needs to approve the contract.
What's ironic about this is that the Iraqi government recently barred Sinopec, another Chinese oil company, from doing business in the country. Sinopec and CNPC are different companies, but they're both owned by the Chinese government. Sort of takes the sting out of the blacklisting, doesn't it?END
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