Iraq reaches initial deal with China's ZhenHua Oil to develop East Baghdad oil field, Iraqi Oil Minister Jabar Ali al-Luaibi said on Monday.
In a press meeting in Baghdad, al-Luaibi said that Iraq and ZhenHua Oil will work together to reach a daily oil production capacity of 40 thousand barrels from East Baghdad oil field, under the terms of a five-year agreement.
The Chinese firm will also construct a residential area, health care center, school and kindergarten near the oil field, the minister said.
He asserted that the 50 percent of the work force in the oil facility will be Iraqi citizens.
Iraq starts producing oil from Nasiriyah oil field located in the southern city of Dhi Qar, Iraqi minister announced in a previous statement on Monday.
The country produces 4.5 million barrels of oil per day and exports about 3.5 million, which is the main source of revenue for the war torn Arab country.
Reporting by Haydar Hadi in Baghdad
Writing by Ebru Sengul
Anadolu Agency
energy@aa.com.tr