BAGHDAD, September 2 – Iraq’s cabinet has approved a $3bn (€2bn, £1.6bn) oil service contract with China, the government of Prime Minister Nouri al-Maliki said on Monday, in a move that could signal the shape of anticipated future oil deals.

“The cabinet has approved a service contract to develop and produce the Adhab oilfield between the [Iraqi] Northern Oil Company and a Chinese company, according to terms initialled by both sides,” Ali al-Dabbagh, the government spokesman, said in a statement.