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Iraq said an agreement signed during the Saddam Hussein era allowing State-owned China National Petroleum Corp to develop the al-Ahdab oilfield remains valid, the Financial Times reported.

Citing oil minister Hussein al-Shahristani, the newspaper also said Iraq will welcome Chinese bids for other projects under a "fair and transparent bidding process" to be laid out in the new oil law under discussion in Iraq's parliament.

China National Petroleum Corp, parent of listed group Petrochina, signed a deal with Iraq in 1997 to develop al-Ahdab, the newspaper said, adding that the field is one of the first to be offered to foreign investors since the 2003 US-led invasion.

The field had an estimated pre-war capacity of 90,000 barrels a day and the 1997 contract was valued at about 1.2 billion US dollars.

"The contract with the previous administration is still valid it was signed and we will honor it," the newspaper quoted al-Shahristani as saying.

He told the newspaper there were still some technical details to work out but that the two sides would begin discussing revised commercial terms and price details "within one month."