Iraq awards $960m contracts to UK & Chinese firms

Contracts relate to Iraq's 17 billion barrel Rumaila field

CPECC won a $425m contract for the field
CPECC won a $425m contract for the field

The Iraqi government said on Tuesday it had awarded two major energy contracts for its Rumaila oilfield project worth $960.8 million, according to news site Reuters.

It approved a $535.8 million contract with British oil service firm Petrofac to submit projects management services for the supergiant Rumaila, which pumps more than a third of Iraq's total output of over 3 million barrels per day (bpd).

China Petroleum Engineering & Construction Corporation (CPECC) has also won a $425 million service contract to handle engineering, procurement, construction and commissioning work for a power station at Rumaila.

Rumaila, the workhorse of Iraq's oil industry with 17 billion barrels in reserves, is being developed by British oil major BP and Chinese partner CNPC.

Baghdad has signed a series of contracts with foreign oil companies that target total oil production capacity of 9 million barrels per day by 2020 - up from over 3 million bpd.

 

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