BAGHDAD – Iraq's Cabinet has approved two deals with two oilfield services providers jointly worth nearly $1 billion to run operations at the country's largest oil field.
A Cabinet statement Tuesday says it granted Britain-based Petrofac Ltd. a $538.5 million, three-year deal for management services for Rumaila field projects. It added that China Petroleum Engineering & Construction Corp. won a $425 million service deal for engineering, procurement and construction work for a power station at the field.
BP PLC and China's CNPC won rights to develop the massive 17.8 billion barrel Rumaila field in southern Iraq during the country's first postwar oil auction in 2009.
Iraq produces about 3.5 million barrels of oil a day now. It aims to rapidly expand its capacity after decades of war and sanctions.