Iraq expects the CNPC-operated al-Ahdab oilfield to have an initial production rate of 60,000 barrels per day from July 2011, Deputy Oil Minister Abdul Kareem Luaibi said on Sunday.
Al-Ahdab was the first major oilfield development contract awarded by the Iraqi government after the 2003 US-led invasion when it agreed to revive a Saddam Hussein-era deal with the Chinese oil company.
In June 1997, Al-waha Petroleum Co., Ltd, a joint venture of CNPC and China North Industries Corporation, signed an agreement with Iraq’s Saddam Hussein government to develop the al-Ahdab oil field, which was postponed by the UN sanctions on Iraq and the subsequent U.S.-led invasion to the oil-rich state.
In November 2008, CNPC signed a Development Service Contract of Al-Ahdab Oilfield with Iraq’s Ministry of Oil.
Located 180 kilometers southeast to Iraq’s capital city of Bagdad, Al-Ahdab Oilfield has a structural area of about 200 square kilometers.
It has since struck 11 other deals with global oil majors to help it quadruple its output capacity to Saudi levels of 12 million bpd within seven years.
(Sources: CNPC, Reuters)