China starts Iraq's first foreign oil work in decades
By Ahmed Rasheed
BAGHDAD, Jan 2 (Reuters) - The Chinese National Petroleum Company (CNPC) started work on a $3 billion oil project in Iraq on Friday, the first foreign firm to begin such work since dictator Saddam Hussein nationalised the industry decades ago.
A CNPC delegation formally opened the al-Ahdab oi field project in Iraq's eastern province of Wasit, officials there said.
"It's a significant event which signals the first contribution of a foreign company in developing Iraq's oil fields for three decades," Wasit governor Latif al-Tarfa told Reuters by telephone.
"The Chinese engineers have located the spot where they will construct a field work site, and all the company's equipment will reach the southern port of Basra soon."
He said Iraqi security forces were prepared to protect the Chinese workers: "We will do all that is required to prove Iraq has become secure for all foreign oil companies to start developing its fields."
The Chinese will operate al-Ahdab under a service contract initially negotiated under Saddam but renegotiated last year by the new Iraqi government which obtained more advantageous terms.
The field should produce 110,000-130,000 barrels of oil per day -- small by standards in the region -- but the project is an important signal as the government enters negotiations for much larger projects announced this week and earlier in 2008.
Iraq has the world's third-largest reserves of oil, which provides nearly all government revenue. But production has dwindled and infrastructure decayed after decades of economic sanctions and war. Continued...
Economy seen growing at 7.2 pct in FY10 - govt
The forecast reinforces the possibility that the government may start to unwind its fiscal stimulus in the budget. Full Article
AIDING GREECE
Eurozone agree in principle to aid Greece - source
Euro zone countries decide to help debt-stricken Greece. Full Article | Video



India
US
UK






