Chinese CNOOC, together with Turkish Petroleum Corporation (TPAO), have signed a technical service contract for the redevelopment and production of the Missan Oil Fields within Iraq.
In Jaunary 2010, Italian Eni signed a technical services contract for the redevelopment of the Zubair oil field in Iraq. Also, PetroChina inked a service contract for the redevelopment of the Halfaya oil field.
The Missan Oil Fields are located in the southeast of Iraq, about 350 kilometers southeast of Baghdad.
The TSC has a contract term of 20 years and CNOOC has undertaken to increase the daily production of the Missan Oil Fields to 450,000 barrels within six years.
CNOOC will earn US$ 2.3 per barrel on the incremental oil production once the daily production has been raised by 10 percent from its current level and will recover its expenditure through a cost recovery mechanism.
According to the TSC, CNOOC acts as the operator and holds 63.75% participating interest while TPAO holds 11.25%. Iraqi Drilling Company, a local Iraqi company, holds the remaining 25% in the project.
Mr. Fu Chengyu, Chairman and CEO of the Company welcomed the signing of the TSC and commented, "It is a great pleasure to participate in rebuilding Iraqi's oil industry together with TPAO. CNOOC Ltd and its partner will carry out an active investment plan on the development of the Missan Oil Fields, to increase the production level for the benefits of all parties."
TSC will be effective subject to a few pre-conditions including the approval from Iraq.