BP Launches Drilling Tenders for Iraq's Largest Oil Field

Printer Friendly Version
Email this Page

(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.

Printer Friendly Version
Email this Page
Related Companies
 Company: BP plcmore info


 - BP Reaches $18.7 Billion Settlement Over Deadly 2010 Spill (Jul 2)
 - BP, Anadarko Rejected by Top US Court on Gulf Spill Fines (Jun 29)
 - A $500 Billion Maybe: Why Big Iran Moment May Be Years Away (Jun 26)
 Company: Halliburton Companymore info
 - Nigerian Oil Union Says Halliburton Strike is Over (May 27)
 - Nigerian Oil Union Shuts Down Halliburton Operation Over Job Cuts (May 26)
 - US Top Court Backs Contractor KBR In Iraq Whistleblower Case (May 26)
 Company: Weatherford Internationalmore info
 - Oil Services Company Weatherford Raises Job Cuts Target to 10,000 (Apr 23)
 - Weatherford To Cut 5,000 Jobs As It Fights Oil Slump (Feb 5)
 - Weatherford Eliminates COO Role amid Oil Slump (Jan 28)
 Company: Baker Hughesmore info
 - Baker Hughes: US Oil Rig Count Rises For First Time Since December (Jul 2)
 - Baker Hughes: US Weekly Oil Rig Count Decline Slows (Jun 26)
 - Aker to Cooperate with Baker Hughes on Early Phase Oil & Gas Studies (Jun 19)
 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
 - China's CNPC Signs Contract to Build Second Pipeline for Russian Crude (Jun 26)
 - China's Anti-Graft Investigator Keeps Oil Giants in Its Sights (Jun 17)
 - South Sudan Oil Field Becomes Battleground as Economy Reels (May 26)
 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)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Reservoir Engineer (A&D)
Expertise: Petroleum Engineering|Reservoir Engineering
Location: Dallas, TX, TX
 
Offshore Installation Manager (OIM)
Expertise: OIM
Location: Seattle, WA
 
Riser Engineer
Expertise: Structural Engineering|Subsea Engineering|Umbilicals, Risers and Flowlines
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $56.54/BBL 8.90%
Light Crude Oil : $52.53/BBL 7.72%
Natural Gas : $2.76/MMBtu 2.12%
Updated in last 24 hours