BP Launches Drilling Tenders for Iraq's Largest Oil Field

(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


 - BP Says To Keep UK Headquarters Despite British EU Exit Vote (Jun 24)
 - BP Pledges to Keep HQ in UK Despite Leave Vote (Jun 24)
 - BP's Dudley Sees Oil Markets Balancing With $50 Crude This Year (Jun 23)
 Company: Halliburton Companymore info
 - Norway Strike Threat Increases as Parties Fail to Find Agreement (Jun 8)
 - Halliburton Secures Maria Project Service Contract from Wintershall (May 12)
 - Halliburton Joins Schlumberger in Cutting Venezuelan Activity (May 6)
 Company: Weatherford Internationalmore info
 - Document: Algeria's Sonatrach Awards $180M in Oil Service Contracts (May 8)
 - Aker Posts Lower Profits, Cuts Workforce Salary (Feb 12)
 - Oilfield Services Provider Weatherford to Cut 6,000 Jobs (Feb 3)
 Company: Baker Hughesmore info
 - US Oil Drillers Cut Rigs After 3 Weeks of Additions (Jun 24)
 - Baker Hughes: US Oil Drillers Add Rigs for 2nd Week in a Row (Jun 10)
 - Norway Strike Threat Increases as Parties Fail to Find Agreement (Jun 8)
 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
 - Chevron To Ramp Up Gas Production In China's Southwest Chuandongbei Project (Jun 7)
 - CNPC Gears Up for Increased Natural Gas Role in China in Next 5 Years (Jun 6)
 - CNPC Plans Backdoor Listing of Engineering Arm Amid Shakeup (May 27)
 Company: South Oil Co.more info
 - Officials: Occidental to Sell Zubair Stake to Iraq's South Oil (Nov 11)
 - Shell Exports 1st Oil from Majnoon Field in Iraq (Apr 8)
 - Eni, Iraq Amend Zubair Oil Target (Jul 15)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Shop Foreman, Service, Technology, & Rentals-Decommissioning
Expertise: Drilling Foreman / Drilling Supervisor
Location: Morgan City, LA
 
Drilling Superintendent, International Rotation
Expertise: Drilling Manager|Drilling Superintendent|Petroleum Engineering
Location: Houston
 
Texas Solids Control Technicians
Expertise: Floorhand / Roughneck|Rig Mechanic|Roustabout
Location: Texas, United States, TX
 
search for more jobs

Light Crude Oil : $50.11/BBL 1.99%
Natural Gas : $2.69/MMBtu 0.74%
Brent Crude Oil : $50.91/BBL 2.06%
Updated in last 24 hours