Iraq: Contracts Granted For Major Oil Field

May 7, 2014 | 0954 GMT
The Iraqi Cabinet on May 6 approved two major projects worth a total of $960.8 billionĀ in Rumaila oil field, which pumps more than one-third of Iraq’s oil production, Shafaq News reported May 7. The Cabinet granted a $538.5 million contract to British Petrofac for management services. China National Petroleum Corp. won a $425 million services contract to perform engineering and procurement and for construction at the Rumaila power plant. Baghdad aims to increase its oil production capacity from 3 million barrels per day to 9 million bpd. The prospect of revitalized oil production in Iraq and Iran may add to tensions between those two countries and Saudi Arabia over production quotas.