Disinfo: Iraq and China Sign $3 Billion Oil Contract — Thanks Bush!

Amit R. Paley, Washington Post: Iraq and China signed a $3 billion deal this week to develop a large Iraqi oil field, the first major commercial oil contract here with a foreign company since the 2003 U.S.-led invasion.The 20-year agreement calls for the state-owned China National Petroleum Corp. to begin producing 25,000 barrels of oil a day and gradually increase the output to 125,000 a day, said Asim Jihad, a spokesman for the Iraqi Oil Ministry.The contract revamps a deal the Chinese company had reached with Saddam Hussein in 1997 to develop the Ahdab oil field in Wasit province, south of Baghdad near the border with Iran. Unlike that deal, which called for China to share in the revenue, the current contract is based on a fixed-fee structure.Western oil companies came close this summer to reaching agreements with the ministry to return to Iraq. Those smaller technical service contracts involved giving advice on how to boost production. The China deal is a service contract, which is more lucrative and involves large-scale development of the field.