China CNPC ready to revive Iraq oil deal if asked

BEIJING, Sep 29 (Reuters) China National Petroleum Co. (CNPC) is ready to return to Iraq to develop an oilfield, reviving a deal signed in the Saddam Hussein period, if it is officially invited to do so, a company official said on Friday.

The official, who is familiar with the CNPC's overseas investments, said it was welcome news that Iraq wanted China to revive the defunct contract to develop the medium-sized Ahdab oilfield.

''We have not yet received an official invitation from Iraq.

But if we do, we are happy to go back and develop the field,'' the official, who declined to be named, told Reuters.

''It is a project easy to develop as it's close to pipelines.'' Iraq's oil ministry said on Wednesday that the minister, Hussain al-Shahristani, would visit China shortly and would discuss with Chinese companies the fulfilling of contracts signed with the former government.

CNPC, with state arms manufacturer Norinco was awarded the contract to develop the 90,000 barrels per day Ahdab field in south central Iraq by Saddam. The project was effectively frozen by international sanctions and then by the toppling of his government by the U.S.-led invasion in 2003.

The field was estimated to cost 0 million to develop.

The CNPC official said the company would be realistic about the chances of obtaining big oil and gas contracts with the pro-United States government of Iraq.

''It would be tough to compete with the Americans for major contracts. Let's be realistic,'' the official said.

While U.S. oil majors, excluded from Iraq before the U.S.

invasion in 2003, are waiting for Baghdad to pass new laws on the sector before investing, Western oil company executives say Chinese firms are less concerned about having an investment law in place to protect them.

CNPC is the parent of PetroChina, the world's fourth-largest oil and gas producer by market value.

REUTERS DKS GC1820