CNOOC Operations in Iraq

= History =

The technical service contract signed in 2010 for the Maysan oil fields, located about 350 kilometers southeast of Baghdad, marked the start of CNOOC's operations in Iraq.

= Activities and Contracts =

Maysan
In May 2010 CNOOC signed a technical service contract with the Iraqi government to develop the Maysan oilfield complex along with Turkish state-run TPAO. CNOOC's original partner for developing the fields, Sinochem, pulled out of the deal when CNOOC decided to reconsider its original offer and accept the Iraqi government's proposed remuneration fee of US $2.30 per barrel of oil produced. TPAO then joined the venture to fill the gap. CNOOC and TPAO set a production plateau target for the fields at 450,000 barrels per day (bpd). CNOOC holds a 63.75% stake in the venture, while TPAO holds 11.25% and the Iraq Drilling Company company holds a 25% stake.

Chairman Chengyu commented that "it is a pleasure for CNOOC to participate in rebuilding of the oil industry in Iraq" and analysts told the China Daily that the move underlines domestic oil companies' focus on developing oil resources in Iraq, saying that "the country remains one of the few regions in the world where Chinese companies can still find big opportunities".

= References =