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.
