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BP to 'triple oil production' in south Iraq

09 October, 09
BP has signed a deal with the Iraq oil ministry to increase production at a deposit in the south of the country.

Assem Jihad, a spokesman for the ministry, told news agency AFP: "The contract will be sent to the cabinet for approval, then a final date will be chosen to sign the contract during an official ceremony."

BP, the second largest oil company in Europe, signed the deal in partnership with state-owned Chinese oil company China National Petroleum Corporation (CNPC).

It is expected that BP will spend between $10-20 billion (£6-12 billion) on the giant Rumaila field, with the oil ministry hoping that its production will triple over the next six years.

That would mean stepping up output to around 2.8 million barrels of oil a day at the site.

The BP and CNPC consortium first agreed terms with the Iraqi government in June 2009 and have spent the last three months finalising the terms of the deal.ADNFCR-2675-ID-19402509-ADNFCR

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BP to 'triple oil production' in south Iraq