Iraq-Eni Sign Zubair Oil Deal

Iraq's oil ministry has signed an initial deal with a consortium led by Italy's Eni SpA to develop a prized southern oil field. Eni, the U.S.s Occidental Petroleum Corp. and South Korea's KOGAS will develop the 4.1 billion barrel Zubair field, with the companies to receive US$2 per barrel of crude produced.

That's less than half US$4.80 per barrel they had bid in the licensing round held in June in Baghdad. The consortium will initially produce 200,000 bpd , rising to 1.1 million bpd within seven years.The contract lasts 20 years and could be extended to 25. The deal was signed on 2 November 2009, but must still be approved by the Cabinet.- Saudi Press Agency