Italian oil giant Eni SpA, US-based Occidental Petroleum Corp. (OXY) and Korea Gas Corp. (KOGAS), Friday signed a final technical service contract to redevelop Iraq's Zubair oil field in partnership with state-owned South Oil and Missan Oil Companies.
As per the 20-year deal signed, the consortium plans to invest around $20 billion, while raising oil production of the Zubair field to around 1.2 million barrels per day. This represents an increase of more than 1 million barrels of oil per day. The contract also have provision to further expand it's lifespan by additional 5-years to 25 years.
With around 32.81% stake, Eni leads the consortium that includes Oxy with 23.44% stake, KOGAS with 18.75% stake and the Missan Oil Co with 25% share. The project was initialized on November 2, 2009.
Upon raising the current production level by 10%, the consortium will earn $2 per barrel on the incremental production. Current production level at the field is around 200,000 barrels of oil per day.
Target production is expected to be progressively reached within the next six years and maintained for seven years thereafter. Expenditures will be recovered through a cost recovery mechanism.
Rehabilitation and expansion of the project will be manged by the Zubair Field Operating Division and will be staffed mainly by employees from South Oil Company with expert support from the consortium.
Italian Government owns a 30% golden share in Eni, with 20% held through the state Treasury and 10% held through the Cassa depositi e prestiti.
OXY is currently trading at $76.55, up $0.55 or 0.72%, on a volume of 1.79 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.