PetroChina, China's largest oil producer, and two other oil firms inked a deal to develop oil resources in the southern Halfaya oil field in Iraq. PetroChina partnered with Total of France and Malaysia's Petronas on the agreement. Iraq's oil ministry confirmed the deal was signed on Tuesday.
PetroChina (PTR) has a 50% stake in the project while Total (TOT) and Petronas each have a 25% stake.
Halfaya has proven reserves of 4.1 billion barrels of oil and the three companies are hoping to boost their production in the region to 535,000 barrels per day, according to press reports.
The Halfaya field was part of the Iraqi oil field auctions that took place earlier this month that saw Iraq auction stakes in its oil fields to oil producers from all over the world. It is estimated the auctions will help Iraq boost its oil production to 12 million barrels per day in seven years, according to media reports.