From The BBC:
Iraq’s cabinet has ratified a deal with two foreign energy companies to develop the giant southern oilfield in Rumaila.The contract with Britain’s BP and CNPC of China is the first major deal with foreign firms to be signed since an international auction in June. The project aims to almost triple output at the 17bn barrel field – increasing it by 2m barrels a day. Iraq has the world’s third largest oil reserves, but production lags behind potential due to a lack of investment. The country’s total daily output of 2.4m barrels is lower than it should be due to problems stemming from sanctions against former Iraqi governments, lack of investment and insurgent attacks, analysts say. Bidders withdrawThirty two companies – including Shell, Exxon, BP and Total – bid for contracts to develop six oil fields and two gas fields in June’s televised auction, Iraq’s first big oil tender since the invasion of 2003.
But most of the bidders withdrew at the last moment, saying the terms on offer were un…
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