Angolan national oil company Sonangol and Iraq have entered into 20-year contracts for the Qayara and Najmah oilfield development.
The deals were awarded in Decemeber 2009 during Iraq's second round of bidding for oil contracts.
The Qayara and Najmah oilfields in Iraq's Nineveh province near the city of Mosul, contain 800 million and 900 million barrels of reserves, respectively.
Sonangol, which will be paid $5 a barrel and $6 a barrel in remuneration fees for the Qayara and Najmah oilfields, is expected to raise production at the fields to 120,000bpd and 110,000bpd, respectively, reports Reuters.
Sonangol plans to make a $2bn investment in the Qayara oilfield, with a number of companies keen on teaming up with the company for joint exploration.
The two contracts are part of Iraq's initiative to increase its oil production capacity to 12 million bpd in seven years to gain a competitive edge in the global market.