BP and China National Petroleum Corp (CNPC) are close to signing a 20-year contract to develop the Rumaila oilfield in Iraq, reports indicate.

In a statement made to the Middle East Economic Survey over the weekend, Iraq's deputy oil minister Abdulkareem al-Leaby announced: "We have more or less finished with the outstanding points. Hopefully, there will be a signing within a couple of weeks."

The contract is valued at between $14 billion and $20 billion and by the time it expires both companies will be expected to have tripled production at the vast field.

Currently, production from Rumaila averages one million barrels per day.

The contract will be the first to be awarded to international oil companies since the fall of Saddam Hussein's regime, although the oil ministry is hopeful that more licences will be tendered during the second bidding round, taking place in December.

Many international firms withheld bids during the first licensing rounds in protest of what were deemed to be unfavourable conditions setting out production profit limits

Getenergy event for Iraq October 2009