France says it abides by former oil deal to develop Majnoon

Azzaman, February 22, 2009

By Kareem Abedzair

France has informed Iraqi authorities that it is still interested in the deals it signed with the country under the former regime of Saddam Hussein, Oil Ministry sources said.

The sources, refusing to be named, said Paris was particularly interested in a multibillion oil deal it had struck with the former regime to develop the giant oil field of Majnoon.

France has resumed intensive negotiations and visits with Iraq.

Following a landmark visit to the country by President Nicolas Sarkozi early this month, Baghdad has been the venue for trips by several senior French officials.

The product sharing deal was signed while Iraq was under punitive U.N. trade sanctions and it owed France billions of dollars.

Due to the sanctions, the French could not start implementing the deal and vowed to do so once the trade curbs were lifted.

The sanctions were removed once Saddam Hussein was removed from power in 2003, but oil majors have stayed away from the country due to mounting violence.

It was not yet clear whether the Iraqi authorities would agree to the same product sharing conditions since they have repeatedly said they would now prefer service deals.

The Majnoon field is Iraq’s largest and one of the world’s biggest undeveloped fields with proven reserves estimated at up to 30 billion barrels.

Iraqis have dug up several wells in Majnoon and are reported to be producing about 100,000 barrels from it.