Sonangol & Iraq to Ink Deal Soon

Angola and Iraq are expected to sign a deal soon to press ahead with executive steps after the African state’s recent winning of rights to explore for crude oil in the northern Iraqi oil fields of Najma and Qaiyarah.

The agreement has been tentatively reached and the two sides are expected to sign the accord soon, said a senior Angolan official. He indicated that the Angolan oil company, Sonangol, won the bidding to explore for crude in the two fields, where reserves were estimated at 2 billion barrels, and indicated that several international companies expressed desire to establish partnership with the Angolan company to take part in the operation.

In early-December 2009, Iraq declared that Sonangol was the sole bidder in the auction that was held at the headquarters of the oil ministry in Baghdad and that it requested US$6 per barrel of oil to be extracted from Najma field, located in the northern province of Nineveh. The two sides agreed on US$5 per barrel for pumping the crude out of the other field, located in the same governorate. - Zawya