Angola's state-owned oil company, Sonangol, has signed deals with Iraqi oil ministry to develop two oil fields in Nineveh province, known as one of the most dangerous regions of the country.
Iraq's Deputy Oil Minister Abdul Kareem al-Luaby and an executive from Sonangol signed the agreement in Baghdad Wednesday.
Africa's top oil producer, Angola currently holds the rotating presidency of OPEC.
Sonangol will be paid between $5 and $6 a barrel to extract oil in the Qayara and Najmah oilfields in northern Iraq, according to Oil Ministry spokesman Assem Jihad.
This is one of the highest fees awarded in Iraq's oil deals, reflecting the risks involved in operations and relatively low quality of oil at the two sites.
The two fields combined contain an estimated 1.7 billion barrels of oil.
The deal, last of the seven oil contracts awarded earlier this month, requires approval by the Iraq cabinet.
A total of 44 companies took part in Iraq's second post-war licensing auction held in Baghdad during December 11-12.
Tuesday, A consortium consisting of Russia's Lukoil, Norwegia's state-owned Statoil, and Iraq's national oil company signed one of the largest oil deals, for a field with estimated reserves of 12.9 billion barrels.
The agreements, the first major oil deals Iraq has signed with international oil companies since the US-led invasion of 2003, will help it immensely in achieving full production potential.
A bidding round in June flopped as firms resisted the financial provisions imposed by the Iraqi government, which apparently prompted it to improve contract terms this time.
Iraq has the world's third-largest oil reserves, but sanctions against former Iraqi governments, lack of investment and decades of insurgent attacks prevented the Arab country from becoming the world's No. 3 oil producer.
Out of the country's estimated reserves of approximately 115 billion barrels, only about 2.4 million barrels are being extracted a day.
The deals are crucial for Iraq, which relies on oil for 90 percent of its government budget.
Iraq is planning to develop 85 oil and gas fields over a period of 10 years.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.