BAGHDAD, Feb 26 (KUNA) -- Iraqi Foreign Minister Hoshiyar Zebari said on Thursday that his country signed a joint partnership oil deal with the United Kingdom.
In a joint press conference with visiting Foreign Secretary David Miliband, Zebari said that Iraqi oil ministry signed a deal with UK-based Mesopotamia Petroleum Company worth Bond 277 (USD 400 million), adding that the joint venture will work in drilling for oil in Iraq.
The new joint venture is expected to increase Iraq's oil production by 120,000 barrels per day.
The deal between the Mesopotamia Petroleum Company and Iraq's oil ministry will see 60 oil wells drilled per month, each producing 2,000 barrels of crude per day.
"This sends an important signal, not just to the people of Iraq about the long-term economic commitment of Britain to Iraq, but also to British business that Iraq is open for business," said Miliband.
Iraqi leaders recently invited foreign firms to invest in the oil-rich state as security improves.
Iraq is currently producing around 1.8 million barrels a day from its southern oil fields or 70 percent of the country's total crude oil production.
Iraq oil reserve is reportedly to be the world's third-largest, which needs billions of dollars investment to overhaul its oil industry infrastructure and increase oil and gas output after decades of wars and sanctions.
Visiting Miliband is expected to visit British forces in Basra on Friday, as they prepare for withdrawal in July.
Copyright Kuwait News Agency 2009.
