Iraq, CNPC begin oil project

China National Petroleum Corp (CNPC) and Iraq inaugurated a US$3 billion oil project yesterday in Iraq’s south-eastern Wasit province, Reuters reported. The project, the first deal between Iraq and a foreign oil firm since the fall of Saddam Hussein, is expected to produce up to 130,000 barrels of oil daily. CNPC had originally signed the contract to operate the al-Ahdab field with Saddam Hussein’s government; negotiations last year changed the terms of the agreement to give CNPC a set-fee service deal in place of an original production-sharing agreement. CNPC executives say they plan up to 138 wells for the field, and will begin drilling soon.