Occidental Petroleum Corp. and partners Eni SpA and Korea Gas Corp. said Friday that they signed a contract with Iraq’s state-owned South Oil Co. and Missan Oil Co. to redevelop an oil field near Basra in southern Iraq.

The agreement furthers Iraq’s efforts to bring in Western oil technology and raise output in the wake of the Iraq war. It also will be the first time a U.S. oil company has done business in Iraq since the country nationalized its oil industry in 1970.

Under the 20-year deal, the partners will develop the 4.1-billion barrel Zubair field and will earn $2 per barrel on the incremental oil production once production has been raised by 10 percent from its current level.

“We are pleased to join with the Iraqi government, the Iraqi people and our consortium partners in developing one of the world’s great oilfields,” said Chief Executive Ray R. Irani in a press release.

Occidental shares were up $1.82, or 2 percent, to $71.83 in midday trading on the New York Stock Exchange