Iraq May Sign Ahdab Oil Field Contract With China

In its never-ending search for natural resources and energy, China is about to sign a deal with Iraq to develop to Ahdab oil field. From AP:

Saddam Hussein’s regime defied United Nations sanctions that limited direct dealings with Iraq’s oil industry and signed a deal in 1997 with the state-owned China National Petroleum Corp.

That contract, worth $1.2 billion, gave a subsidiary of the Chinese company concessions to develop the field on a production-sharing basis for 22 years.

The new agreement will be a service contract, under which China will not be a partner in profits and instead will be paid for its work.

Once the contract is signed, it will be the first Saddam-era oil deal to be honored by the new Iraqi government. A number of companies say they signed deals with Saddam’s regime and demand that those be honored, or the countries involved be given priority on new agreements.

Read also a report from Bloomberg, and a commentary on the deal from the New York Times blog.

August 21, 2008 8:53 AM
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