On May 17th 2010, CNOOC Limited (CNOOC Ltd.) announced that the company, via its wholly owned subsidiary company, CNOOC International Limited, together with Turkiye Petrolleri Anonim Ortakligi (TPAO), signed a Technical Service Contract (TSC) for the development and production of the Missan Oil Fields within Iraq.

 

According to the TSC, CNOOC Ltd. acts as the operator and holds 63.75% participating interest while TPAO holds 11.25%. Iraqi Drilling Company, a local Iraqi company, holds the remaining 25% in the project. And CNOOC Ltd. will undertake to increase the oil daily production of the Missan Oil Fields to 450,000 barrels within six years.

 

CNOOC Ltd. will earn US$ 2.3 per barrel on the incremental oil production once the oil daily production rises 10% from its current level and will recover its expenditure through a cost recovery mechanism.