Jereh signs the deal to develop an lraqi gas field.
Chinese oilfield service provider Jereh has made its debut as an exploration and production player in Iraq, after gaining a role in the Middle East country's second largest gas field.
Jereh has previously been involved in Iraq through its core business as an oilfield services provider.
The new agreement, with state-owned Midland Oil Company of Iraq also follows the recent awards of 10 onshore blocks to Chinese companies in Iraq's latest licensing round.
In partnership with Petro Iraq, Jereh will spearhead the development of the Mansouria natural gas field in Iraq's Diyala province, pending approval from Iraqi and Chinese authorities.
Iraq's Oil Ministry will reimburse Jereh through the procurement of all natural gas, liquefied petroleum gas, and condensate to ensure anticipated cost recovery and equitable distribution for the Chinese company.
Jereh and Petro Iraq aim to achieve an initial production rate of 100 million cubic feet per day from Mansouria within 18 months, with peak production projected to reach 300 MMcfd within four-to-five year after the agreement has been finalised.
Spanning 20 kilometres in length and between three and four kilometers in width,
Mansouria boasts estimated reserves of 4.5 trillion
cubic feet, positioning it as Iraq's second-largest gas field after Akkas.
