Brittany Sturdivant
November 12, 2008
Energy and Oil
In Baghdad on Monday China’s largest oil producer, China National Petroleum Corp (CNPC), signed a three billion dollar oil deal with Iraq. The oil deal allows CNPC and Zhenhua Oil, to develop the Al-Ahdab oil field in the province of Wasit. The deal allows the companies to develop the oil in the field for 23 years! This oil deal will be the first major oil development deal that a foreign firm has secured from Iraq since the fallen of Saddam Hussein in 2003. The CNPC is saying that within the next three years they are expecting the oil production to reach to 25,000 barrels a day and within six years they expect the oil production to reach to 115,000 barrels a day. I think it’s great that Iraq is finally making a deal with another country, but I’m very curious to why Iraq had not made a major deal with another country since the fallen on Saddam Hussein in 2003. Iraq could’ve made a lot of money by signing an oil deal with a country before now, but I think this oil deal is a great move for both countries. China will benefit a lot from this agreement with Iraq especially since the population in China is growing rapidly. Also, since the demand of oil is has increased rapidly in the past few years China will benefit a lot.
http://afp.google.com/article/ALeqM5j55Nkay59BWERRIbOJKa02x3EF5g
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