Nippon Oil in Iraq to finalise $8bn Nassiriya deal

Executives in Baghdad to thrash out terms after months of negotiations

(Getty Images)
(Getty Images)

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The Japanese consortium looking to develop Iraq’s Nassiriya oilfield is in Baghdad to finalise the US$8 billion deal with the Iraq Oil Ministry.

Reuters reported that executives from the Nippon Oil led consortium arrived in Iraq with hopes of finally agreeing terms after months of intense negotiations with oil officials from the Gulf state.

"Today, talks resumed with representatives from Nippon, Inpex and Japan international bank to discuss the contractual and financial terms of the Nassiriya deal," Abdul Kadhim is reported by Reuters as saying.

Nippon Oil and it’s fellow Japanese partners Inpex and JGC have seen off some stiff competition for the contract to run Nassiriya. Other contenders for the contract included Italian supermajor Eni.

The Iraq Oil Ministry hopes that Nassiriya will yield 150,000 barrels per day (bpd) within two years rising to 600,000 bpd after that. The The contract includes the construction of both refining and power-generating facilities.

"If we reach a common understanding on issues under discussion, a deal could be signed with the Nippon consortium at the end of the talks," Kadhim is reported by Reuters as saying.

Talks are expected to last for two to three days. 

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