(Yicai Global) June 8 -- Chinese engineering firm Zhongman Petroleum and Natural Gas Group, better known as ZPEC, has partnered with private Chinese oil firm Geo-Jade Petroleum to explore an eastern Iraqi block which is rich on oil and dried gas.
ZPEC signed a cooperation agreement with Beijing-based Geo-Jade, under which the pair will share their resources and strive for win-win development in the Middle Eastern oil-rich country, the Shanghai-based firm said in a statement. ZPEC will provide operation management, engineering services, equipment, and funding support for the Naft Khana block.
Geo-Jade won the bid for exploration and development rights in two Iraqi blocks in April. The firm's share of net profits from Naft Khana block, which is located in Diyala, will be 14.67 percent, while earnings from Huwaiza block, which is in southern Mayssan province, will stay at 7.15 percent, the company said at the time of winning the tender.
Iraq is now the second-largest oil producer among the Organization of Petroleum Exporting Countries, right behind Saudi Arabia with its daily production of around 4.4 million barrels a day from Baghdad-controlled oil fields, up from nearly 2.4 million a day in 2009.
Editor: Emmi Laine