China National Offshore Oil Corp (Cnooc) is close to securing a license for the Missan field in Iraq, a 2.5-billion barrel reserve in the south of the country.

Dow Jones reports that after much wrangling with Iraqi petroleum licensing authorities, the company has accepted the terms of development set down by Baghdad.

In addition to compliance with oil training programmes to boost skills among the local workforce, the company has also agreed to remuneration fees of just $2.30 a barrel.

Cnooc and fellow Chinese firm Sinochem put in an unsuccessful bid during the country's first post-Saddam licensing round last year, with Iraqi authorities viewing the suggested remuneration fee of $18.09 a barrel unpalatable.

Oil ministry spokesperson Assem Jihad confirmed to Dow Jones Newswires that Cnooc has now accepted the original fee proposition.

If it is finalised, the Cnooc licence deal will be the 11th such contract to be completed since the two rounds of bidding last year.

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