Iraq Signs Oil Deal With
Foreign Firms
Iraq
has ratified a deal with two foreign energy companies to develop
the giant southern oilfield in Rumaila.
The contract with Britain's BP and CNPC of China is the first
major deal with foreign firms to be signed since an
international auction in June.
The project aims to almost triple output at the seventeen
billion barrel field, increasing it by two million barrels a
day.
Iraq has the world's third largest oil reserves but, production
lags behind potential due to a lack of investment.
Iraq’s total daily output of two point four million barrels is
lower than it should be, due to problems stemming from sanctions
against former Iraqi governments, lack of investment and
insurgent attacks.
BBC/Qasim/Yinka
