Iraq’s cabinet has approved a $526.6 million drilling deal with China’s Zhongman for the West Qurna Two oilfield, the government said in a statement on Tuesday.

Under the 28-month contract, Zhongman Petroleum and Natural Gas will drill 66 production oil wells at West Qurna Two, operated by Russia’s Lukoil, the statement said.

Current production capacity at West Qurna Two is over 400,000 b/d but actual output is less than 350,000 b/d.

Ranked as one of the largest oil fields in the world, West Qurna Two, where Lukoil holds a 75% stake, is one of several big fields under development which are set to boost Iraq’s economy.

Source: Reuters