Iraq awarded a three-year contract valued at US$640mn to Baker Hughes to drill 60 wells in Iraqs southern Zubair oilfield, government spokesman Al Al-Dabbagh said.

Iran says its crude production has dropped due to a lack of investments in its oilfields.

Exxon Mobil is looking into the possibility of taking over the UKs Gulf Keystone Petroleum (GKP) in a deal that would value the group at US$10.9 billion. (Update)

The International Energy Agencys (IEA) monthly report for November saw its estimate for oil demand in Q4 2011 fall to 0.7mn bpd (down by 0.2mn bpd), but the watchdog left its forecast for 2012 unchanged at 1.3m bpd.

The Organization of Petroleum Exporting Countries (OPEC) in its monthly report has revised downwards its forecast for world oil demand in 2012 saying it would now reach 88.87mn bpd, down from its previous forecast of 89.01 million bpd.