BP and CNPC said to be set to unveil alliance

Oil giant BP and China National Petroleum Corp will reportedly unveil a strategic alliance next week to develop oil resources in Iraq and other regions.

Sources cited by Reuters said the deal, which is one of several high profile transactions to be signed during a visit by Chinese President Xi Jinping to London, will aim to boost cooperation between the two companies in Iraq, where they are developing the giant Rumaila oilfield in southern Iraq.

According to BP’s website, Rumaila is the world’s second-largest oilfield and produced 1.34m barrels a day last year.

Reuters said the two companies will also seek to expand into new joint ventures in other parts of the world. No clear production or investment targets are expected to be included in the deal, sources said.

At 1513 BST, BP shares were up 1.8% at 385.60p.