Iraq signs initial deal with Italian oil giant

03/11/2009

The Iraqi oil ministry has signed an initial contract with a consortium led by the Italian energy giant, ENI, to develop the Zubair oilfield in southern Iraq.

Cabinet approval is required for the deal to go through, which hopes to see production rates increase to more than 1.1 million barrels per day within seven years.

Iraq has the world's third-largest proven reserves of oil, with more than 115 billion barrels available, meaning that the country is only behind Saudi Arabia and Iran. However, the country has yet to take full advantage of the commodity to the same extent that other countries have.

Spokesman Assem Jihad told Agence France-Presse: "Yes, it was initialled today and it will go to the cabinet to be approved in the next few days. After that, it will be signed and then implemented."

Last month the country agreed a deal with Britain's BP and China's CNPC.