China and Iraq Sign Oil Deal

China National Petroleum Corporation (CNPC) and Iraqi state-owned oil company North Oil have signed a contract worth $3.5 billion. From The New York Times:

It will allow CNPC, together with another Chinese company, Norinco, to develop the Adhab oil field in the southern Iraqi province of Wasit for 20 years, Mr. Shamaa said in a telephone interview.”It has been the same contract since Saddam’s regime, but we changed it from a production-sharing contract to a service contract,” Mr. Shamaa said. “The contract includes developing the field, digging wells, laying down bibs, delivering crude oil to the national grid, and natural gas processing and delivery.”