By John Lee.
At its regular meeting in Baghdad on Tuesday, the Iraqi Cabinet received a briefing on negotiations led by Iraq’s Ministry of Oil with ExxonMobil and PetroChina on the Southern Iraq Integrated Project.
In a statement, the government describes the project as "a mega energy and infrastructure scheme consisting of building oil pipelines, storage facilities and a seawater supply project to inject water from the Gulf into reservoirs to increase oil production and Iraq’s export capacity."
According to Reuters, Iraq is close to signing the $53-billion, 30-year agreement, from which it expects to make $400 billion over the life of the project.
It quotes the Prime Minister as saying that it will involve increasing production at the Nahr Bin Umar and Artawi oilfields from around 125,000 barrels per day (bpd) now to 500,000 bpd.
(Sources: Iraqi Cabinet, Reuters)