Sonangol accepts Ministry’s offer for Qaiyarah

BAGHDAD - Sonangol accepted the Iraqi Oil Ministry's offer of a $5 per barrel remuneration fee for Qaiyarah Saturday morning, after refusing to come down to the ministry's terms the day before. A production plateau has been set at 120,000 barrels per day.

The field is near the hot spot of Mosul where, Sonangol officials said during Friday's first round of bidding, they were unwilling to take less than $12.50 per barrel because the oil is heavy and requires expensive upgrades to get it market-ready.