Munaeem's Blog

A political independent and moderate’s comments, analysis and links on important stories in the news

Saturday, June 23, 2007

Iraq wants China to explore an oilfield in Iraq's southern Wasit province

President Jalal Talabani will visit China this week. The purpose of his visit to renew a $1.2 billion deal to explore an oilfield in Iraq's southern Wasit province, which was signed in 1997.

Iraq's Ambassador said that they wanted China to join the multinational competition for exploration of Iraqi oilfields.

Iraq is the third largest in the world. It produces only 2 million barrels per day (bpd) now. Sanctions imposed on Iraq during Sadams;s era destroyed its oil industry's infrastructure. Now they want investment in oil sector to boost their production as Iraq oil sales making up 93 percent of the federal budget.

The question is : will China take risk to meet its growing demand for oil.

posted by Munaeem, in Iraq @ 9:12 AM, Email this post to friend