BAGHDAD - China's Sinopec has won a deal to develop Iraq's Mansuriya gas field near the Iranian border, the oil ministry said on Tuesday.

Last year Iraq cancelled a contract signed with a group led by Turkish Petroleum Corp (TPAO) to develop the field and invited international energy companies to compete to develop it. 

Sinopec won the contract in a bidding round held at the oil ministry headquarters in Baghdad on Tuesday, the oil ministry said in a statement.

Iraq's state-run Midland Oil Company will partner Sinopec in development of the Mansuriya field, the statement said.

Under the 25-year contract, Sinopec will hold a 49% stake and Midland Oil Company will hold 51%, the statement added.

Sinopec will help Iraq to capture and process natural gas from the field and boost output to 300 million cubic feet of gas per day (mcf/d) as a targeted production level, the statement quoted Oil Minister Ihsan Abdul Jabbar as saying.

No timeline was provided.

Iraq is planning to sign contracts with foreign energy companies to develop its gas fields and build gas facilities in southern Iraq and Anbar province, the ministry cited Jabbar as saying.

Gas captured from the field will be used to feed power stations in Baghdad and Diyala province near the border with Iran.

(Reporting by Ahmed Rasheed Editing by Jason Neely and David Goodman) ((ahmed.rasheed@thomsonreuters.com; +964-7901-947-131; Reuters Messaging: ahmed.rasheed.thomsonreuters.com@thomsonreuters.net))