Iraq-Eni Sign Zubair Oil Deal

SINAN SALAHEDDIN

BAGHDAD (AP) — Iraq's oil ministry on Monday signed an initial deal with a consortium led by Italy's Eni SpA to develop a prized southern oil field, an agreement representing a key step forward in the country's obstacle-strewn road to revamp its dilapidated oil sector.

Eni, the U.S.'s Occidental Petroleum Corp. and South Korea's KOGAS will develop the 4.1 billion barrel Zubair field, with an eye to boosting output from around 200,000 barrels per day to 1.1 million barrels a day within seven years.

Although the deal must still be approved by the Cabinet, Iraqi Oil Minister Hussain al-Shahristani, hailed it as a significant achievement at Monday's signing ceremony in Baghdad.

"Today, Iraq made a big leap on the way to develop its oil industry," said al-Shahristani of the deal, which comes a day before Iraq is to finalize an agreement with Britain's BP PLC to develop the nation's largest oil field. "We are happy with this progress and the achievement."

Shahristani also promised "more good news in the coming days that will "put Iraq on the international oil map."