Elaine Yi's List: Energy

While most oil firms rejected the Iraqi oil ministry's payment terms, BP and CNPC cut their remuneration fee to $2 a barrel and won Rumaila

According to the 20-year service contract, BP will hold a 38% stake in the venture, CNPC will take 37% and the remaining 25% will be held by Iraq, said Abdul Mahdy al-Ameedi, head of the ministry's Petroleum Contracts and Licensing Directorate.

 

Rumaila, with estimated proven reserves of 17 billion to 20 billion barrels, is currently producing some 1.1 million barrels a day, almost half of Iraq's total output of 2.5 million barrels a day. The BP/CNPC alliance promised to increase production to 2.85 million barrels a day, bringing Iraq's total crude oil production to 4.25 million barrels a day.