CNPC Eyes Oil, Despite Poor Returns

BMI View: The start-up of production at CNPC's Halfaya field brings Iraq a step closer towards meeting its production target of 9mn barrels per day by 2020. However, this is still an ambitious target given the lacklustre interest shown by companies in Iraq's rich potential - which the country's paltry licensing terms are to blame for. However, the need to secure oil supplies might have overrode the profit incentive in CNPC's interest in Iraq's upstream.

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