Iraq Negotiates with CNOOC over Maysan Oilfields

Iraq's Oil Ministry is negotiating with China's CNOOC for a service contract for the 2.5 billion barrel Maysan oilfield complex, Iraqi oil officials said.

Oil Minister Hussain al-Shahristani said the Chinese company, which he did not identify, had accepted the government's proposed remuneration fee of $2.30 for every additional barrel of oil produced.

Another Iraqi oil official, who asked not to be identified, said the company was CNOOC, which together with Sinochem (600500.SS) made an unsuccessful bid for Maysan's three fields in Iraq's first auction of oilfield contracts last year.

"After the big success we achieved the Chinese company returned back to us and said 'we accept your offer of $2.30'," Shahristani told al-Salam television channel.

The deal could join a series of contracts that Iraq has signed in a bid to boost its output capacity in seven years to 12 million barrels per day, rivaling top producer Saudi Arabia, from around 2.5 million bpd now.