Iraq signs contracts for Eni’s Zubair oilfield

oilwell iraq-iancu justin sxc.huIraq has approved major contracts for two de-gassing stations at Eni’s Zubair oilfield worth US$1bn

The federal Cabinet signed the deals after the Italian company threatened to pull out of the country, Reuters reported.

Meanwhile, Angolan state oil company Sonangol has reportedly decided to exit Iraq due to security concerns.

Paolo Scaroni, CEO of Eni, said, ”If they do not sign the contracts in a couple of weeks we will go. We have waited six months,” he said.

A senior unnamed Iraqi official said the circumstances affecting decision-making by Sonangol and Eni were not connected. “Sonangol tried its best to stay, but this is a security issue. They have not done any work on the ground,” he said.

Eni, on the other hand, was seeking swift approval for contracts to push the Zubair oilfield, now pumping about 320,000 bpd, towards a target of 850,000 bpd.

“We respect Eni and take their opinions seriously. We want them to stay in Iraq,” the official said.

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