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 It Is Considering IPO of US Pipeline Assets (Jul 18)
 - Total, BP Unit, YPF Boost Investment in Argentina's Vaca Muerta (Jul 18)
 - Big Oil Sees Salvation in Gas, But What If It's a Wrong Bet? (Jul 18)
 Company: Halliburton Companymore info
 - Halliburton Sees N. America Rig Count Flattening, Shares Down (Jul 24)
 - Halliburton's Incoming CEO Sees Price Hike Above 10% (May 18)
 - Halliburton CEO To Retire Next Month, Be Replaced By Jeff Miller (May 17)
 Company: Weatherford Internationalmore info
 - Weatherford Names Former Halliburton CFO Its New Chief (Mar 7)
 - Document: Algeria's Sonatrach Awards $180M in Oil Service Contracts (May 8)
 - Aker Posts Lower Profits, Cuts Workforce Salary (Feb 12)
 Company: Baker Hughesmore info
 - US Drillers Add Oil Rigs, Pace Remains Slow -Baker Hughes (Jul 7)
 - Kemp: US Shale Producers Are Drilling Themselves into a Hole (Jun 30)
 - US Oil Drillers Cut Rigs for First Week Since January - Baker Hughes (Jun 30)
 Company: Schlumbergermore info
 - Schlumberger Buys Eurasia Drilling Stake In Test Of Russia-US Ties (Jul 21)
 - Schlumberger Expects International Markets Recovery In Late 2017 (Jan 20)
 - Schlumberger Expands Production Services Portfolio with Peak Buy (Jan 5)
 Company: CNPCmore info
 - China's Teapot Refiners Set to Slow Crude Imports as Tanks Overflow (May 26)
 - China to Complete Russia Pipeline Sections by End-2018 -Official (May 16)
 - China, Saudis Said to Discuss CIC, CNPC Stake in Aramco IPO (Mar 16)
 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
Directional Driller - South Texas
Expertise: Driller
Location: San Antonio, TX
 
Floorhand
Expertise: Floorhand / Roughneck|Roustabout
Location: Grand Junction, CO
 
Remote Paramedic w/ Clerking Experience
Expertise: Paramedic / Nurse|Rig File Clerk|Safety Officer
Location: GOM, TX
 
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours