China Makes $3B Deal to Develop Iraqi Oil

First Saddam-era oil deal to be revived since invasion

By the Associated Press

Posted Aug 28, 2008 7:45 AM CDT

(AP) – China and Iraq have dusted off an oil deal that was in the works before the 2003 US invasion of Iraq, giving China the rights to develop the Ahdab field, reports the AP. The agreement—which has grown from an estimated $1.2 billion to $3 billion—was originally struck by the Saddam Hussein government in 1997, to take effect once UN sanctions on Iraq's oil industry were lifted.

The old contract gave a subsidiary of China's state-owned oil company concessions to develop the field on a production-sharing basis for 22 years. The new agreement, which has to be approved by the two governments, will be a service contract, under which China won't be a partner in profits and instead will be paid for its work.

Refinery workers repair an installation at an oil refinery in Basra, 550 kilometers (340 miles) southeast of Baghdad. (AP Photo/Hadi Mizban)

A worker controls a valve on a pipeline at the Zubair Moshrif oil field, 600 kilometers (372 miles) southeast of Baghdad, Iraq. (AP Photo)

People work at an installation at the Zubair Moshrif oil field, 600 kilometers (372 miles) southeast of Baghdad, Iraq. (AP Photo)

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China Makes $3B Deal to Develop Iraqi Oil

First Saddam-era oil deal to be revived since invasion

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UK Consulted Big Oil Before Iraq Invasion

Memos reveal secret top-level talks with BP, Shell

Iraq's Oil Reserves Bigger Than Previously Thought

Country claims it has 24% more crude in new estimate

Pentagon Lost Track of $8.7B in Iraqi Oil Money

It didn't wind up in specially designated accounts

Oil Giants Bend to Iraq's Terms

War for oil hasn't been too lucrative for American companies

American Adviser to Kurds Outed as Oil Shareholder

Galbraith's policy push won him $100M

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China Makes $3B Deal to Develop Iraqi Oil

First Saddam-era oil deal to be revived since invasion

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OTHER STORIES ON OUR RADAR

Iraq • Iraq oil • United States • oil production • China National Petroleum Corp.

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

UK Consulted Big Oil Before Iraq Invasion

Memos reveal secret top-level talks with BP, Shell

Iraq's Oil Reserves Bigger Than Previously Thought

Country claims it has 24% more crude in new estimate

Pentagon Lost Track of $8.7B in Iraqi Oil Money

It didn't wind up in specially designated accounts

Oil Giants Bend to Iraq's Terms

War for oil hasn't been too lucrative for American companies

American Adviser to Kurds Outed as Oil Shareholder

Galbraith's policy push won him $100M

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Newser By Users

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