CNPC ups stake in Rumaila project

China National Petroleum Corporation (CNPC) has increased its stake in a project to develop Iraq's giant Rumaila oilfield, while the UK's BP has lowered its share, an Iraqi oil official said.
BP and CNPC were the only oil companies to secure a deal in Iraq's first bidding round for oilfield service contracts, after other companies at the Oil Ministry's June auction baulked at what they said were stiff contract terms.
The senior official, who declined to be named, said CNPC's stake was now 37%, up from an original 25%, and that BP's had fallen to 38%, down from 50%.
Iraq's State Oil Marketing Organisation will continue to hold 25%, he said.
BP and CNPC officials met Iraqi officials in Basra in late September as part of steps to finalise the Rumaila deal, the Iraqi oil official said, giving no timeline for completion.
"A delegation comprising of financial and administrative officials from BP and CNPC concluded a three days of meetings with South Oil Company (SOC) officials to discuss Rumaila operating and investment expenses," the Iraqi oil official said on Saturday.
Iraq's SOC oversees exports and production from the southern oil hub of Basra and surrounding areas.
Talks included negotiations over the number of employees in a joint operating team of BP, CNPC and Iraqi workers.
Rumaila is the workhorse of Iraq's oil industry with a current capacity of 1.1 million barrels per day, almost half Iraq's total output of 2.4 million bpd.
To secure the Rumaila contract, BP and CNPC cut their remuneration bids to $2 per barrel from their initial target of nearly $4 a barrel.
China has been aggressively seeking crude to feed its booming economy, tapping sources in regions seen as risky or unprofitable by others, reported Reuters.