Iraq has accepted a bid from a British-Chinese consortium to develop the giant Rumaila oil field in southern Iraq, with proven reserves of 17 billion barrels of crude.
The consortium has offered to increase the current production from 950,000 barrels (b/d) a day to 2.85 million b/d, and will receive $2 for each additional barrel produced.
Iraq has offered six oil fields and two gas fields for bidding, but has failed to attract suitable bids.
The government is due to consider whether the conditions it has offered to potential bidders are attractive enough.
Iraq seeks to increase production to 6 million b/d by 2017 from the current level of 2.4 million b/d.
Sources: Al-Sabah, Al-Zaman, Iraq, July 1, 2009
