China National Petroleum Corporation (CNPC) has agreed to start developing the Ahdab oil field with proven reserves estimated at 1.4 billion barrels, Governor of Wasit Province said.
By Abdullah Ajel
Azzaman, March 6, 2008
A delegation led by the governor, Latif Tarfah, and CNPC officials last week reached an agreement to develop the field during talks in the Jordanian capital Amman.
“The Province of Wasit has given the Chinese side assurances and guarantees of providing the necessary security and removing any hurdles on the path of Chinese operations in the province,” Tarfah said.
The governor made the remarks in Kut, Wasit’s provincial capital.
Ahdab is located within Wasit’s provincial borders and the governor said the field’s development will boost the province’s staggering economy.
Tarfah said he has already held meetings with the tribal leaders inhabiting the area surrounding Ahdab and asked for their cooperation.
“I explained to them that the development of Ahdab will be a blessing first to their areas. The tribal chieftains promised to guarantee the protection of the personnel and equipment the Chinese firm sends to their areas,” he said.
CNPC hopes to pump more than 100,000 barrels a day from Ahdab over a period of at least 22 years.
Tarfah said the talks with CNPC were conducted under the auspices of the Oil Ministry.
Iraq and China had signed a $700 million deal in 1997 to develop Ahdab.
The deal, struck under the former regime, is to be revitalized with slight modifications, with China given a share of output for a period of 22 years.
