Iraq Approves $600 Mln Oil Depot Contract With CPP

Iraq's cabinet said it had approved a $607 million contract with China Petroleum Pipeline (CPP) for the construction of an oil storage depot near its Nassiriya oilfield in the south of the country.

The oil ministry delayed last month an international tender for the development of the Nassiriya field and construction of an associated 300,000 barrel a day refinery.

The four billion barrel Nassiriya oilfield is currently producing around 40,000 barrels per day.

Export infrastructure, rather than production, is the main hurdle to the OPEC member country keeping exports steady.