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CNOOC signs oil field service contract in Iraq

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A worker operates valves at the Rumaila oil refinery, near Basra, Iraq. [China Daily]

China National Offshore Oil Corp. Ltd. (CNOOC Ltd.) said Monday its wholly owned subsidiary CNOOC International Limited had signed a technical service contract in Iraq with Turkish Petroleum Corporation (TPAO).

The contract targets development and production of the Missan oil fields in Iraq, state-owned CNOOC Ltd. said in a statement on its website.

The Missan oil fields are located in southeast Iraq, about 350 kilometers southeast of Baghdad.

The contract has a term of 20 years and the CNOOC Ltd. has undertaken to increase daily production at the Missan oil fields to 450,000 barrels within six years.

According to the contract, CNOOC Ltd. acts as the operator and holds a 63.75 percent participating equity while TPAO holds 11.25 percent. Iraqi Drilling Company, a local Iraqi company, holds the remaining 25 percent.

Incorporated in Hong Kong, CNOOC Ltd. is a listed subsidiary of China National Offshore Oil Corporation, China's largest offshore oil producer.