Ahdab oil field

The Ahdab field lies in a 303 square kilometre block in Iraq's Wasit province, 180 km south-east of Baghdad. The field was originally explored using 1970s vintage 2D seismic data.

Iraqi officials have estimated that the field holds approximately 1 billion barrels of oil. The field also holds 750 billion standard cubic feet (scf) of associated gas reserves, however as of 2011 no plans had been announced for their commercial development, in which case the gas would likely be flared or reinjected.

Contracts Negotiated
A deal for exploitation of the al-Ahdab field was first signed in 1996 between the CNPC and Saddam Hussein's government. However, the deal was postponed after the UN imposed sanctions and delayed further by the US-led invasion in 2003.

However in November 2008 Chinese CNPC secured rights to the Ahdab field under a technical services contract signed with the Iraqi government. Under the terms of the contract the company has development rights for 23 years and is to invest $3 billion. Analysts told the New York Times in 2011 that the Ahdab operation is CNPC's largest in the Middle East. A Chinese oil executive also claimed in 2009 that the company would make a profit of less than 1% but that the contract was a way to 'get a foot in the door' of the Iraqi industry.

According to a 2008 US diplomatic cable, CNPC estimates that output could reach as high as 110,000 barrels per day (bpd) and that CNPC will be paid 'something like' $6 per barrel under the terms of the deal. But Chinese Trade Counselor Zhue Yuesheng commented that the Chinese side was concerned about Iraqi security guarantees, which had to be resolved before work could begin at the site.

The deal over the oilfield has drawn criticism from residents and officials in Wasit Province. Some people demanded that Wasit be granted a royalty of $1 per barrel to improve access to clean water, health services, schools, roads and other public needs in the province, which is among Iraq’s poorest. However, the Iraqi government rejected the demands. The residents complained in 2009 that Chinese development of the field would hold no benefits for them, other than providing local employment for less than $600/month. Fears were also raised over security for workers and fears of kidnapping.

Production and Export
In November 2012 it was reported that the field had a total of 170 operating wells and was producing at a level of 140,000 bpd.

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