Aid & Development

Iraq, Chinese firm to sign for development of Baghdad oil field

Iraq

The spokesperson for the Iraqi Oil Ministry, Assem Jihad, said that Iraq will sign a contract with the Chinese company, Zhenhua Oil, in order to develop the southern section of the Eastern Baghdad oilfield.

Iraq will sign on Wednesday a contract with a Chinese company for the development of an oil field east of the capital, Baghdad, a spokesperson of the oil ministry said on Tuesday.

Assem Jihad said Iraq will sign the contract with ZhenHua Oil to develop the southern section of Eastern Baghdad oilfield. He said the agreement aims to drive up production from the field to 40.000 barrels per day within five years.

He added that the Chinese company will also establish a residential compound annexed to the field, and will commit to rely on Iraqi workers to a great extent.

Both sides signed a preliminary agreement on the project late 2017.

Iraq is OPEC’s the second largest oil producer after Saudi Arabia.

Image: Reuters

Article: Iraqi News