Iraq-Chinese oil deal kicks off in Wasit

Photo By Sgt. 1st Class Joe Thompson | From left: Chinese Ambassador to Iraq Chang Yi, Iraq Minister of Oil Hussein Al-Shahristani, Wasit Governor Abd al-Latif Hamad Tarfah and Al-Waha board chairman Zhi Yulin cut the ribbon to the Ahdeb oil field project March 11.  

AL KUT, IRAQ

03.12.2009

Story by Sgt. 1st Class Joe Thompson 

Multi-National Division-Central

FORWARD OPERATING BASE DELTA, Iraq – Iraq's Oil Minister and Chinese National Petroleum Company delegates cut the ribbon at the Ahdeb oil field southwest of Forward Operating Base Delta March 11.

"This project will provide a number of jobs and opportunities for investment which will provide the province with electricity and power to operate the power station in Zurbadiyah and to help to contribute to the development and prosperity of this province," said Hussein Al-Shahristani, Iraqi Oil Minister.

The CNPC originally signed an agreement with Iraq's government in 1996, but it was postponed due to U.N. sanctions and then Operation Iraqi Freedom. A new deal was brokered in November 2008 between the CNPC and Baghdad.

"We look at this opportunity as the start of rebuilding the prosperity of Wasit," said Abd al-Latif Hamad Tarfah, Wasit governor. "This is the first investment project in Wasit and we hope it will last a long time."

Al-Waha Petroleum Company is contracted by the CNPC and uses the same air and logistics company that Kellogg, Brown and Root uses in supporting coalition forces at FOB Delta. Al-Waha Petroleum Company coordinated with U.S. Forces to use the airfield on FOB Delta in support of their operations.

According to Col. Richard Francey, 41st Fires Brigade and FOB Delta commander, the security situation in Wasit province is ready for other companies to bring in their business as well.

"Being a partner with the local Iraqi security forces, we will help them if they have any challenges and be an enabling force in the superb Iraqi security force efforts in providing continued security to the province," said Francey.

"The security is set for many others to come here. The Chinese just happen to be the first," he added. "This is a good thing in the long run for the province and the Iraqi people."

According to Zhi Yulin, board chairman, Al-Waha Petroleum Company, digging at the Ahdeb oil field is set to start in about a month, with production of oil estimated to reach 110,000 barrels per day.

• Date Taken: 03.12.2009
• Date Posted: 03.12.2009 04:53
• Story ID: 31013
• Location: AL KUT, IQ