Iraq initials deal to develop southern oil field

BAGHDAD: An Iraqi oil official says a preliminary deal has been inked with a consortium led by China's CNPC to develop a promising oil field in southern Iraq.

Oil Ministry spokesman Assem Jihad says CNPC and partners Malaysia's Petronas and France's Total initialed the deal Tuesday during a signing ceremony in Baghdad.

The deal calls for the consortium to develop the 4.1 billion barrel Halfaya field for $1.40 per barrel produced. Jihad says the consortium plans to raise production from the current 3,100 barrels per day to 535,000 barrels per day over 13 years.

The 20-year deal still needs to be approved by Iraq's Cabinet.

The new deal increases CNPC's presence in Iraq. It already has two other deals to develop oil fields in Iraq.