New oil company will be established between Iraq and British Petroleum Company Mesopotamia in order to dig oil wells in Iraq which expected to increase Iraqi oil production by 120 thousand barrels per day a year.

The new company – which is named the Iraqi company for oil services – with investments value by 400 million dollars. The company will dig that Iraq has 51% of its capital, about sixty new oil wells per year.

 
The two companies signed an agreement to establish the joint venture yesterday in the framework of Iraq’s efforts to increase production in the short term. The company will focus initially on its southern oil fields.

 
The agreement comes at a time when Iraq goes ahead with his plans for the award of contracts for oil companies to develop giant oil and gas reserves and the huge increase in production.

 
Iraq has the third largest oil reserves in the world.