Iraq has approved two deals worth nearly US$1 billion to run operations at Rumaila, the country’s largest oil field.

UK-based Petrofac was awarded a US$538.5 million management contract for Rumaila field projects, while China Petroleum Engineering & Construction Corp. won a US$425 million engineering, procurement and construction contract to build a new power station. Rumaila is located in southern Iraq, about 32 kilometers from the Kuwaiti border.

The Iraqi government plans to triple oil production capacity from today’s 3 million barrels a day to 9 million. Production from Rumaila accounts for more than a third of the country’s total output. The oilfield is being developed by Britain’s BP and Chinese partner CNPC.

*NEWS SOURCE