CNPC looks to increase stake in Rumaila
President heads to London to discuss super giant Iraqi field with BP
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China National Petroleum Corporation (CNPC) hopes to renegotiate a higher percentage in the super giant Rumaila oilfield in Iraq when its president meets officials from BP in London.
The Xinhua news agency reported that Jiang Jiemin will try and increase its stake from 25%. BP currently has a stake 50% in the joint venture with Iraqi partners owning 25%.
Recent reports suggest that senior official at BP agreed to develop the field for too low a figure so a deal where CNPC takes a bigger stake may be attractive to the British supermajor.
The deal that was struck between the consortium and the Iraq Oil Ministry was for US$2 for every extra barrel produced from the field above minimum plateau production target set by Baghdad.
The BP-led consortium had initially requested $3.99 for every extra barrel produced over the minimum target while the rival consortium for Rumaila, headed by ExxonMobil, had asked for $4.50.