China Petroleum lands $548m Iraq oil deal
Company lands deal from government to develop Halfaya oilfield
China Petroleum Engineering & Construction Co (CPECC) has won a $548m contract to develop Iraq's Halfaya oilfield.
The company has been awarded an engineering, prcurement, construction and commissioning contract to develop the field, which should be capable of producing around 535,000 barrels of oil per day when it completes in 2017, according to reports.
The deal was awarded by Iraq's oil ministry, which had previously agreed an earlier stage contract in 2010 with a consortium to operate the field. The consortium consists of China Petroleum National Corportation (which has a 37.5% stake), Total and Petronas.
According to Reuters, the first phase of the field's development began last year and it is currently producing around 100,000 barrels per day.