China's Cnooc is close to finalizing a deal to develop Iraq's 2.5 billion-barrel Missan oil-field after completing talks with Iraq's government and agreeing to terms laid forth by the country's oil ministry. Cnooc and its partners are looking to develop three Missan fields in southern Iraq.
Cnooc (CEO) will not be the first Chinese oil firm to become a player in Iraq's burgeoning oil industry. PetroChina (PTR) is part of a consortium that is developing Iraq's giant Rumaila oil field. PetroChina is also developing Iraq's Ahdeb field.
The Cnooc-led group would have to pay a recoverable signature bonus of $300 million, according to the Wall Street Journal. China's oil companies have been looking to expand overseas over the past several years in an effort to meet that country's soaring energy demands. Cnooc holds a 60% stake in the Missan project.
Iraq has set a minimum production plateau target of 275,000 barrels a day from the Missan fields, which are producing 100,000 barrels a day, the Journal reported. The country is believed to hold the third-largest oil reserves in the world and is the sole OPEC member that is not subject to the cartel's production quota system.
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