Iraq has awarded two contracts totaling nearly a billion dollars to Britain’s Petrofac and China’s CPECC, Reuters reports.
The deals, for services at the super-giant Rumaila field near Basra, were worth $535.8 million for Petrofac and $425 million for China Petroleum Engineering & Construction Corporation.
Rumaila is a field of key strategic importance for Iraq, with an estimated recoverable reserves of 17 billion barrels, currently being operated by a consortium of BP and CNPC. Successful development of the field will be crucial if Iraq is to realize its ambition of 9 million bpd production.
The field, which was discovered in 1953, represents approximately 12% of Iraq’s known reserves, located roughly 2400 meters below ground.