Iraq’s Oil Ministry has announced that the country’s Midland Oil Company (MOC) has awarded a contract to Chinese oil and gas services provider the Zhenhua Oil for developing its East Baghdad oil field.

The contract calls upon Zhenhua Oil to help MOC, the operator, to produce 40,000 barrels a day of oil from the southern part of the field, mainly to feed Baghdad’s Dora refinery and nearby power plants.

According to regional projects data tracker MEED Projects, the contract is likely to be completed by 2022-end. The value of the deal is not known.

As per the terms of the agreement, Zhenhua Oil is also required to have 80 per cent of the staff working on the project to be locals. According to the Iraqi Ministry of Oil’s website, MOC will develop an industrial and residential complex around the project for workers.