Iraqi oil Minister Hussain Al Shahristani has confirmed that Iraq and a company of China, CNPC have agreed on a deal of $3 billion to pump oil from Adhab oilfield. China National Petroleum Corporation (CNPC) is a biggest oil & gas company of Aisha by producing 2.76 million barrels oil per day.

This was an old agreement which was canceled in 2003 after US invasion in Iraq. This is also being considered a first big oil contract after the fall of Saddam’s government. Experts say that one major reason of signing this contract is that Iraq needs billions of dollars to invest in its energy sector after war.

Minister has further said that CNPC will obtain 75% share while 25% will go to Iraq. Under this revised contract, Adhab will be able to produce 110,000 barrels per day oil.