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02 November 2009
Iraq"s oil ministry has signed an initial deal with a consortium led by Italy"s Eni SpA to develop a prized southern oil field.
Eni, the U.S."s Occidental Petroleum Corp. and South Korea"s KOGAS will develop the 4.1 billion barrel Zubair field, with the companies to receive $2 per barrel of crude produced.
That"s less than half $4.80 per barrel they had bid in the licensing round held in June in Baghdad.
The consortium will initially produce 200,000 barrels a day, rising to 1.1 million within seven years.
The contract lasts 20 years and could be extended to 25.
The deal was signed Monday, but must still be approved by the Cabinet, the Associated Press reported.
© Saudi Press Agency 2009
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