A ministry spokesman told AFP the target was to produce 40,000 barrels per day from the southern sector of the East Baghdad field within five years of implementation of the accord between ZhenHua and Iraq's Midland Oil Company.
The output will be used for the capital's Dora refinery and nearby electricity plants.
Under the deal, the Chinese firm is to build housing for the workers, a nursery school and a clinic. Iraqis will initially account for 50 per cent of the workforce, a figure which is to rise to 80 per cent.
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