Cnooc and Turkish state-run Turkiye Petrolleri (TPAO) have signed a technical service contract (TSC) for development and production of the Missan oil fields in Iraq.
The TSC has a contract term of 20 years and Cnooc has undertaken to increase the daily production of the Missan oil fields to 450,000 barrels within six years.
Cnooc will earn $2.3 per barrel on the incremental oil production once the daily production has been raised by 10% from its current level and will recover its expenditure through a cost recovery mechanism, the company said.
According to the TSC, Cnooc acts as the operator and holds 63.75% participating interest while TPAO holds 11.25%. Iraqi Drilling holds the remaining 25% in the project. The TSC will be effective subject to pre-conditions including the approval from Iraq.
Fu Chengyu, chairman and CEO of Cnooc, said: “Cnooc and its partner will carry out an active investment plan on the development of the Missan oil fields, to increase the production level for the benefits of all parties.”