Iraq has signed its first major oil deal with a foreign company since the fall of Saddam Hussein's regime, a spokesman for the Iraqi Oil Ministry said Saturday. Iraq's oil fields currently produce around 2.5 million barrels a day. Iraq's oil fields currently produce around 2.5 million barrels a day. It was the first time in more than 35 years that Iraq has allowed foreign oil companies to do business inside its borders. The contract with the China National Petroleum Corporation could be worth up to $3 billion. It would allow the CNPC to develop an oil field in southern Iraq's Wasit province for about 20 years, said Oil Ministry spokesman Assim Jihad. Iraq's Cabinet must still approve the contract, but Jihad said that would happen soon, and work could start within a few months. The Chinese company will provide technical advisers, oil workers and equipment to develop the Al-Ahdab oil field, providing fuel for the Al-Zubaidiya power plant in Wasit, southeast of Baghdad, bordering Iran, Jihad said. Once development begins, the field is expected to start producing a preliminary amount of 25,000 barrels of oil a day and an estimated constant daily amount of 125,000 barrels after three years, he said. Iraq currently produces about 2.5 million barrels a day, 2 million of which are exported daily, Jihad said. That is close to its status before the US-led war that toppled Saddam in 2003, but below its levels prior to the Persian Gulf War in 1991. Iraqi Oil Minister Hussein Shahrastani told CNN in July that he is confident Iraq will be able to double its production in the next five years. The Saddam regime had a partnership contract with CNPC signed at the end of the 1990s that entitled the company to share profits.
