|Oil signed a contract with a Chinese company to develop the field east of Baghdad|
Alsumaria News / Baghdad
Oil Ministry announced on Sunday that it will sign a contract with a Chinese company to develop a field east of Baghdad, reaching production to 40 thousand barrels in five years.
"The ministry will sign an initial contract with China's Genghua Oil Company on Monday to develop a field in eastern Baghdad - the southern part," ministry spokesman Assem Jihad said in a statement.
Jihad said that "the ministry aims to develop the field and reach production to 40 thousand barrels within five years from the date of entry into force of the contract." He added that "the Chinese company will also build an oil city including housing units and service facilities, including the establishment of a school Nursery and medical clinic ".
"The contract obliges the contracting company to rely on the national labor force by 50 percent gradually increasing to 80 percent," Jihad said. "The field is owned by the Central Oil Company."
Many foreign companies have refrained from investing in the oil fields in Baghdad, which are supervised by the North Oil Company because they are located within residential areas, in addition to the quality of oil in them, which is heavy compared to oil fields in the southern region.
The capital Baghdad, especially in the northern and eastern regions, many of the oil wells operating under the supervision of the Ministry of Oil, some of them since the era of the former regime, where the extraction of 20 thousand barrels of oil per day.
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