China’s Zhongman Petroleum has budgeted to invest $481m in two Iraqi oil fields, according to an announcement by the company.

It is planning to invest $264m in the first phase of developing Iraq's Middle Furat Oil Field (MF Block) and $217m in the first phase of developing the East Baghdad Field North Extension (EBN Block).

The funds will be invested in stages and used for old well rehabilitation, drilling, oil testing, surface engineering, oil and gas pipeline construction and reserve assessment.

The initial development plan for the MF and EBN blocks has been drafted and is awaiting approval by the project's joint management committee and Iraq's Petroleum Ministry.

Zhongman Petroleum won its bid for the development rights of the MF Block and EBN Block in May this year.

The MF block is located in the Najaf and Karbala provinces in central Iraq, covering an area of 1,073 square kilometres (sq km).

A total of 1,450 sq km of three-dimensional seismic exploration have been completed in the block, along with the drilling of six exploration wells. Four of the exploration wells resulted in commercial discoveries.

The EBN Block is located in Baghdad Province and covers an area of 231 sq km. All of the seven wells drilled in the block have hit oil and gas reserves.

The annual work plan and budget for the two blocks have been approved by Iraq's Oil Ministry. The first draft of the initial development plan has been completed and will be submitted for approval after it has been discussed and improved in collaboration with Iraq Central Oil Company.