Finance & Investing
News Services
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy


BP Launches Drilling Tenders for Iraq's Largest Oil Field

change text size

(Dow Jones), Feb. 17, 2010

UK oil major BP, along with Iraq's South Oil Co., has announced a tender to drill 56 wells and work on several others as part of the company's 2010 program to develop Iraq's largest oil field, Rumaila, a senior Iraqi oil official said Wednesday.

"A number of companies have been invited to bid for the drilling contract including Weatherford and Schlumberger," Abdul Mahdy al-Ameedi, head of the Iraqi oil ministry's petroleum contracts and licensing directorate, told Dow Jones Newswires.

He didn't name other companies, but separately an Iraqi oil official said Halliburton Co. and Baker Hughes Inc. were also invited.

Ameedi said that the development program of the field called for increasing production from the field by 110,000 barrels a day during this year. Rumaila, which is in southern Iraq and holds oil reserves of 17 billion barrels, is producing 1.07 million barrels a day.

BP and China National Petroleum Corp. signed a 20-year technical service contract in November last year to develop the field.

An Iraqi oil official said the BP/CNPC consortium also invited bids for purchasing rigs. He said there are already 10 rigs owned by the Iraqi Drilling Co. and Weatherford working in the field but that more rigs were needed. He gave no further details.

The BP-led consortium has pledged to almost triple production at the field to 2.85 million barrels a day. Under the deal, BP holds a 38% stake in the venture, while CNPC has 37% and Iraq's South Oil Co. the remaining 25%. The three contractors will receive a fixed fee of $2 for each additional barrel of oil produced from Rumaila.

The Rumaila deal is one of 10 deals signed with international oil companies late last year and early this year in a bid to revamp the country's war-hit oil industry and quadruple the country's production of 2.5 million barrels a day.

Copyright (c) 2010 Dow Jones & Company, Inc.

Related Companies
 Company: BP plcmore info

 - Team RECon Wins US Leg of BP's Ultimate Field Trip Competition (Apr 17)
 - Ex-BP Employee Settles SEC Insider-Trading Oil Spill Case (Apr 17)
 - BP Head Says Russian Business Unaffected by Sanctions (Apr 15)
 Company: Halliburton Companymore info
 - Halliburton Partners with Russian University on Shale Development (Feb 3)
 - Women Who Shine: Q&A with Cindy Bigner (Jan 27)
 - Halliburton Manager Gets Probation In Gulf Spill (Jan 21)
 Company: Weatherford Internationalmore info
 - Weatherford Sells Pipeline, Specialty Services Business to Baker Hughes (Mar 25)
 - Weatherford Says Cutting Back Venezuela Operations (Mar 24)
 - Oilfield Services Provider Weatherford To Cut 7,000 Jobs (Jan 30)
 Company: Baker Hughesmore info
 - Baker Hughes Profit Rises as North American Margins Improve (Apr 17)
 - Baker Hughes Seals Deal for CGG Technology in Shale Science Alliance (Mar 25)
 - Weatherford Sells Pipeline, Specialty Services Business to Baker Hughes (Mar 24)
 Company: Schlumbergermore info

 - Schlumberger Sees 2% Fourth-Quarter Profit Hit From Iraq shutdown (Dec 3)
 - Schlumberger to Restart Iraq Rumaila Oil Operations, Official Says (Nov 14)
 - Schlumberger Opens New Reservoir Laboratory in AU (Nov 12)
 Company: CNPCmore info
 - Arctic Gas Project Backs Political Strategy as Russia Turns East (Apr 11)
 - Shell, CNPC to Cooperate in Deep-Sea Exploration, Shale Gas (Apr 9)
 - Top Chinese Oil Firm CNPC To Participate In Mexico Oil Opening (Mar 28)
 Company: South Oil Co.more info
 - Shell Exports 1st Oil from Majnoon Field in Iraq (Apr 8)
 - Eni, Iraq Amend Zubair Oil Target (Jul 15)
 - Iraqi South Oil Co. Official Allegedly Took Bribes (Mar 5)

Most Popular Articles
From the Career Center
Jobs that may interest you
Senior Upstream Research Analyst - Latin America
Expertise: Geologist, Geophysicist, Petroleum Engineering
Location: USA, TX
Senior Field Operations Engineer
Expertise: Drilling Consultant, Petroleum Engineering, Production Technologist
Location: Houston, TX
Expertise: Production Engineering
search for more jobs