GOP nightmare in an AP headline: "Iraq signs $3 billion oil deal with China" [View All]

[Bozita]

Advertise this and the Republicon Party hits the "Endangered Species" list before the end of the year.


http://edition.cnn.com/2008/BUSINESS/08/30/iraq.china.oil.deal/index.html

Iraq signs $3 billion oil deal with China

Story Highlights
Iraq signs $3 billion oil deal with Chinese national oil company
Deal is first major contract with foreign company since fall of Saddam Hussein
China National Petroleum Corporation to develop oil field in southern Wasit province
Oil field expected to produce 125,000 barrels a day within three years

BAGHDAD, Iraq (CNN) -- Iraq has signed its first major oil deal with a foreign company since the fall of Saddam Hussein's regime, a spokesman for the Iraqi Oil Ministry said Saturday.

It was the first time in more than 35 years that Iraq has allowed foreign oil companies to do business inside its borders.

The contract with the China National Petroleum Corporation could be worth up to $3 billion. It would allow the CNPC to develop an oil field in southern Iraq's Wasit province for about 20 years, Oil Ministry spokesman Assim Jihad said.

Iraq's Cabinet must still approve the contract, but Jihad said that would happen soon and work could start within a few months.

The Chinese company will provide technical advisers, oil workers and equipment to develop al-Ahdab oil field, providing fuel for al-Zubaidiya power plant in Wasit, southeast of Baghdad, bordering Iran, Jihad said.

Once development begins, the field is expected to start producing a preliminary amount of 25,000 barrels of oil a day and an estimated constant daily amount of 125,000 barrels after three years, he said.

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