Iraq signs 2 oil deals with Angola's Sonangol

AP News
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Posted: Dec 30, 2009 7:48 AM

An Iraqi official says the Angolan national oil company Sonangol has signed preliminary deals to develop two small oil fields in northern Iraq.

Oil Ministry spokesman Assem Jihad said Wednesday Sonangol will develop the 858 million barrel Nejma field and the 807 million barrel Qayara field.

The two are part of 15 fields offered to international oil companies during Iraq's second international oil licensing round earlier this month. Seven fields were awarded, all under 20-year contracts in which the companies receive a per barrel price for the crude they produce.

The deals must still be ratified by the Cabinet

Iraq, home to the world's third largest proven reserves of crude, has been struggling to raise oil production from current levels of about 2.5 million barrels per day.