Iraq Fires Up Production from Nassiriyah Oil Field
AMMAN (Dow Jones Newswires), Jun. 22, 2009
Iraq has started crude oil production from a giant oil field in southern Iraq for the first time, in a bid to increase the country's crude output, an official with the South Oil Co. said Monday.
"We have started experimental production from Nassiriyah oil field at a rate of 10,000 barrels a day," the official told Dow Jones Newswires. He expected production to increase gradually to 20,000 barrels a day within the next few days.
Fayadh al-Naama, head of the South Oil Co., said production from the oil field is expected to hit 50,000 barrels a day in a year. Production from the field came after the SOC managed to rehabilitate five wells and connecting them to a degassing station, Naama said.
Nassiriyah, which accounts for some 4.3 billion barrels, was discovered in 1975 and remained undeveloped for more than three decades due to war, lack of cash and economic sanctions. The field, whose production capacity could reach 300,000 barrels a day if it is properly developed, is currently subject to direct negotiations between the Iraqi oil ministry and three oil companies: Italy's Eni SpA (E), Japan's Nippon Oil Corp. (5001.TO) and Spain's Repsol YPF SA (REP).
Nassiriyah's new production is part of a "crush plan" proposed by the Iraqi Oil Ministry earlier this year to increase production from southern oil fields by 350,000 to 500,000 barrels a day in two years.
Iraq's southern oil fields are currently producing around 1.8 million barrels a day.
Naama also said production from the giant Nahr Bin Umar oil field increased by 20,000 barrels a day from the previous 25,000 barrels a day. Total SA (TOT) along with U.S. Chevron Corp. (CVX) and StatoilHydro ASA (STO) are negotiating with the ministry a contract to develop Nahr Bin Umar, which has proven reserves of 6.6 billion barrels.
Copyright (c) 2009 Dow Jones & Company, Inc.
- Saudi Aramco and Total JV to Hire SMBC to Advise on Funding (Jan 17)
- Deepwater Nigeria Field Starts Production (Jan 02)
- Total Spuds Well Offshore South Africa (Dec 27)
Company: Chevron Corporation more info
- Transocean Lands $830MM Rig Contract with Chevron (Dec 28)
- Premier Oil Eyes Bid for Chevron's North Sea Assets (Dec 13)
- Big Oil Battles Prolonged Gender Problem (Dec 04)
Company: ENI more info
- Eni Secures Two Deals for Oman Blocks (Jan 14)
- Eni to Operate Alaska Oil Field (Jan 03)
- Eni Spuds Well in Central North Sea (Dec 31)
Company: Repsol more info
- Big Oil Reuses Platforms in Latest Cost-Cutting Trick (Nov 15)
- Sources: Spain's Repsol Hires Tanker For Iran's Pars Oil As Sanctions Loom (Jun 19)
- Total Signs Deal to Extend TFT Gas Field License in Algeria (Jun 11)
Company: Nippon Oil Exploration more info
- Canadian Oil Sands Halts Syncrude Production After Fire, Prices Spike (Aug 31)
- Tap Updates Zola-1 Drilling in Carnarvon Basin (Dec 22)
- Iraq-Nippon Talks on Nassiriya Oil Field Deadlocked (Mar 01)
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 08)
- Eni, Iraq Amend Zubair Oil Target (Jul 15)
Company: Iraq Ministry of Oil more info
- Exxon Spearheads Iraqi Water-Injection Project (Apr 19)
- Iraq to Alter Signature Bonuses on 2 Oil Field Deals (Apr 15)
- Iraq Plans New Licensing Auction for 3 Gas Fields (Apr 14)
Company: StatoilHydro more info
- Samsung Heavy Industries Lands Statoil FSU Construction Contract (Sep 14)
- First Movers in Eco-Drilling: Going 'Dope'-less (Apr 25)
- StatoilHydro Delays Hammerfest LNG Start Up (Nov 23)