The contract, awarded to CNPC Daqing Drilling Engineering Co, was the single largest overseas contract the company has secured in the past five years, according to a statement posted on the company's official WeChat account.
The statement did not provide the number of wells to be drilled under the contract.
Daqing Drilling began providing its well-drilling service in the Rumaila oilfield in 2010, shortly after CNPC and BP (BP.L) signed a 20-year service contract with Baghdad to develop the giant oilfield.
Iraq planned to increase its oil production capacity to around 7 million barrels per day in 2027, with main increases coming from Rumaila and West Qurna-2, an Iraqi state oil official said last November.
