Eni says signs deal on Iraqi oilfield

(Getty Images)

Italian oil major ENI on Tuesday said it had signed a contract to develop an Iraqi oil field it had earlier walked away from, accepting a lower fee for enhanced terms.

"We cut our fee (but) the whole structure of the contract has been changed,"Chief Executive Paulo Scaroni told reporters on the sidelines of the FT-WEC Energy Leaders conference.

"There has been a sweetening of other elements to the point that this contract is meeting our requirements in terms of return on investment," he said.

He said he expected the new terms to become the standard for Iraq's upcoming second round of licence bids.

Iraqi Oil Minister Hussain al-Shahristani told a news conference on Tuesday that ENI and partners had accepted a development plan for the Zubair oilfield under which they would more than halve the fee they previously sought.  (Reuters)

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