TAIPEI (Taiwan News) – Iraqi Prime Minister Adil Abdul-Mahdi announced Tuesday (May 7) that his country was intending to sign a 30-year oil field development deal worth US$53 billion (NT$1.63 trillion) with PetroChina and Exxon Mobil.

Development funds offered by the Chinese and the United States oil companies would allow production at two fields in Southern Iraq to surge from 125,000 barrels to half a million barrels a day, the prime minister said.

However, more talks were needed with Exxon Mobil and PetroChina about the levels of profit sharing during periods of falling or rising international oil prices, reports said.

Neighboring Iran reportedly alleged that the U.S. would allow Iraq to avoid sanctions for its oil trade with Iran if it allowed the oil deal to proceed. The Iraqi government denied the oil field development agreement was related to the sanctions against Iran.