CNOOC and Sinochem win bid for Iraqi oilfield

According to a Wall Street Journal report, Iraqi officials said that a consortium led by China National Offshore Oil Corporation (CNOOC) is expected to win the bid for Missan oilfields in southern Iraq. The consortium had accepted the price offered by the government of Iraq. The oilfield has reserves of about 2.5 billion barrels.
An Iraqi official said, the Iraqi Oil Ministry has ended negotiations with CNOOC and its partner Sinochem International Co., Ltd. on matters relating to development of three Missan oil fields, and has submitted a draft contract to the Iraqi Cabinet, pending final approval.
Iraqi Oil Ministry spokesman said that the two Chinese companies have accepted the price offered by Ministry of Oil. Iraq has set the lowest oil production target at 275,000 barrels per day. If the Chinese companies can exceed this target, China will be granted a service charge of 2.3 U.S. dollars per barrel from the Iraqi government. The field's production is currently 100,000 barrels per day.
The report said that CNOOC winning the project successfully will further enhance China's importance in oil field development in Iraq. In 2008, China National Petroleum Corp successfully won bid for the first oil field development project in post-war Iraq. In November last year, China National Petroleum Corp joined BP oil and won a bid for then Iraq's largest Rumaila oil field.