BAGHDAD, May 17 (UPI) -- China National Offshore Oil Corp. and the Turkish Petroleum Corp. signed a technical services contract Monday to develop the Missan oil complex in Iraq.
CNOOC in the first post-war auctions in June failed to land an agreement for Missan because of pricing disputes. The technical services contract awarded Monday has a 20-year term. CNOOC said it would work to produce 450,000 barrels of crude oil from the Missan oil field within six years.
The company said it would earn $2.30 per barrel once production at Missan is raised by 10 percent.
Iraqi officials said they aimed to increase Missan oil production from 100,000 barrels per day to 275,000 barrels per day.
Iraq launched a series of international oil auctions meant to revitalize the national oil sector. Oil officials emerged from December oil auctions saying they could rival Saudi Arabia in terms of oil production.
"CNOOC Ltd and its partner will carry out an active investment plan on the development of the Missan oil fields, to increase the production level for the benefits of all parties," said Fu Chengyu, chairman and chief executive officer at CNOOC.
CNOOC will serve as the operator with a 63.75 percent interest. TPAO holds and 11.25 interest and Iraq Drilling Co. holds the remaining 25 percent.