Sinopec Banned from Second Iraq Oil Round

11 October 2009 (Last Updated October 11th, 2009 18:30)

Iraq has barred China’s Sinopec Corp from taking part in a second round of bidding for major oil deals, according to Iraqi officials. The ban is over the purchase of a Swiss oil company active in Iraq’s Kurdistan region, a top official said, according to the Middle East's Trade Arab

Iraq has barred China’s Sinopec Corp from taking part in a second round of bidding for major oil deals, according to Iraqi officials.

The ban is over the purchase of a Swiss oil company active in Iraq’s Kurdistan region, a top official said, according to the Middle East's Trade Arabia website.

Iraq’s Oil Ministry had already threatened to blacklist China’s biggest oil refiner, Sinopec, for acquiring Addax Petroleum Corp.

The ministry has been awaiting an explanation from Sinopec about its dealings with Addax, which has been pumping oil from Kurdistan’s Taq Taq field, according to the news site.

In June, Sinopec said that it had agreed to pay $7.24bn for Addax, giving the Chinese company fields with high potential in regions such as West Africa and Iraqi Kurdistan.

In July, field officials said that Taq Taq was producing between 20,000 to 40,000 barrels per day and has the potential to produce up to 250,000bpd in the future.