BP consortium secures Iraq Oil deal

Iraq’s government has approved an oil deal with a consortium led by British giant BP PLC to develop a prized oil field in the south.

BP and its partner, China’s CNPC, were the only winners in Iraq’s first international oil auction in over 30 years in June for development rights for the 17.8 billion-barrel Rumaila field.

Government spokesman Ali al-Dabbagh said the Cabinet approved the deal yesterday. He did not provide further details.

BP will hold a 38% stake in the venture, while CNPC will have a 37% share. Iraq’s State Oil Marketing Organisation will control the rest.

Iraq has the world’s third-largest known oil reserves and has been trying to boost production by welcoming foreign investment.