Chinese Firm wins $526m Drilling Deal

By John Lee.

Iraq has approved a $526.6-million (614 billion Iraqi dinar) drilling deal with China's Zhongman Petroleum and Natural Gas Group (ZPEC) for the West Qurna II oilfield, according to Reuters.

Under the 28-month contract, ZPEC will drill 66 production oil wells at the Lukoil-operated field.

Current production capacity at West Qurna II is over 400,000 barrels per day, but actual output is less than 350,000 bpd.

(Source: Reuters)