The consortium which is incorporated by CNPC and BP won the joint bid of Rumaila Oilfield project in Iraq. Rumaila Oilfield is the biggest oilfield in Iraq. At present, CNPC has definitely intimated that the engineering technological services, engineering construction and production running of the project will be undertaken by Daqing Oilfield Engineering Co., Ltd.
　　It is the first contract that Iraq has come to term during their international bidding in the recent 30 years. 
　　Iraq has opened 6 oilfields and 2 natural gas fields to invite tenders from international enterprises and 31 enterprises abroad took part in the competitive bidding, including American Exxon Mobil Corp., Royal Dutch Shell Oil Company and 4 enterprises from China such as CNOOC, CNPC, Sinochem International Co., Ltd. and Sinopec Co., Ltd.
　　Since the most of the bidding price were higher than expectation, Iraq accepted only one contract after the Competitive bidding.

　　China and Britain consortium accepted the ultra-low bidding
　　Financial Times considered that only China and Britain consortium agreed the harsh conditions in Baghdad and could make Rumaila Oilfield the second great oilfield of the world.
　　In the morning of June 30th, the financial group which was composed by CNPC and BP accepted the ultra-low bidding price through the final negotiation by both parties that after reaching the lowest production targets, they could earn 2 dollars/b although their expectation is 3.99 dollars/b.  
　　According to the report, the financial group leaded by American Exxon Mobil Corp. has engaged in the competition before, but they refused the bidding from Iraq Petroleum Ministry. However, China and Britain financial group has signed a 20-year long service contract with Iraq this time.
　　The recent daily output of Rumaila Oilfield is 1.1million barrels, the financial group which was composed by CNPC and BP planned to raise the output to 2.85million barrels per day.

　　Rumaila Oilfield
　　Rumaila Oilfield locates 50kms away from west Basra in southern Iraq, it is the biggest oilfield in Iraq, the estimated oil reserves is up to 17 billion barrels, which ranked the sixth in the world.
　　The oilfield consists of two parts: the north part and the south part, the south and north Rumaila Oilfield totally cover 1800 km2. The proved reserves of south Rumaila Oilfield is 1.96 billion tons and the proved reserves of north Rumaila Oilfield is 1.12 billion tons.

　　Mutually Profitable Business
　　Financial Times analyzes and considers that it is a mutually profitable business. The Iraq oil production will be raised 75%, and doesn’t have to take any capital risk.
　　As to foreign large-scale oil company, or to Chinese state-owned companies, such as CNPC, it is worth to pay. As to CNPC, the cooperator of BP, the development of Rumaila Oilfield will give us an opportunity to ensure the oil supply of China, and to develop the relationship with a key petroleum country.  Compile/Trainee Lishixiang

　　Be beneficial to stabilize the oil price
　　The person from CNPC in charge of publicity has declared this morning: consider that the case is related to foreign joint venture project, we will not impart anything related.
　　Hanxiaoping, the chief of China Energy Net says: After the successful bidding, we will obtain the biggest project of the 6 oilfields that Iraq opened to foreign oil companies, it is very important to China’s energy strategy in Middle East Area. It will be beneficial to ensure the oil supply of China, and to stabilize the oil price. However, the oil and gas development in Iraq also faces many safety risks, it is a long way to go for China oil companies.