Iraq awards oil contract to BP-Chinese joint venture

BAGHDAD, Iraq (CNN) - Iraq awarded a lucrative oil contract to BP and China National Petroleum Corporation, government spokesman Ali al-Dabbagh said Wednesday, while rejecting other companies' offers for other oil fields.

The joint BP-CNPC bid was for the al-Rumeila oil field. The energy companies are expected to increase production at the field by 50 percent, to 285,000 barrels a day, for a service charge of $2 for each additional barrel produced, al-Dabbagh said in a statement.

The Iraqi government rejected bids for five other oil fields and a natural gas field because the bidders did not agree to the service charge set by the Ministry of Oil, he said.