Tuesday, August 19, 2008

Iraq to sign $1.2 bln oil service deal with China

Nobody will complain about this.

Iraq to sign $1.2 bln oil service deal with China

By Ahmed Rasheed

BAGHDAD, Aug 19 (Reuters) - Iraq will sign a $1.2 billion oil service contract with China to replace a production-sharing deal agreed under Saddam Hussein, an Iraqi newspaper quoted oil minister Hussain al-Shahristani as saying on Tuesday.

The oil minister is travelling to China at the end of this month to discuss the deal, which was orginally signed in 1997 between Iraq and the China National Petrolium Company (CNPC).

"We have held talks with (the Chinese) for a year, and the terms of the deal were changed to a service contract. The Chinese have agreed on that, with a value of $1.2 billion," Shahristani told the an-Noor newspaper.

If finalised, the revised deal would be the first oil service contract signed by the new Iraqi government since the fall of Saddam in 2003.


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