Iraq reached an initial deal with China’s state-run Zhenhua Oil to develop the southern portion of the East Baghdad oil field, the oil ministry spokesman said on Sunday.
Iraq is seeking the help of Zhenhua Oil to increase production from East Baghdad oilfield to 40,000 barrels per day within five years as of the start of the development operations, Asim Jihad said in a statement.
Last week, Zhenhua Oil took a 13.6 percent stake in Singapore-listed Interra Resources Ltd. through a private placement worth around $3.47 million in a move that boosts its upstream investments in Southeast Asia.
The move comes amid the strategic expansion of Chinese companies in overseas energy markets and adds to China Zhenhua Oil’s existing fields in Iraq, Egypt, Kazakhstan and Pakistan.

Source:Arabnews