A Historic Step in Iraq
Following signature of the Rumaila contract in Iraq, BP and its partners prepare to enhance oil production from one of the world’s largest fields
The new venture plans to grow output to 2.85 million b/d in the second half of the next decade, which would make Rumaila the world’s second largest producing oil field.
Today, BP and its partners signed a technical services contract to develop one of the world’s largest oil fields - Rumaila in Southern Iraq. The objective of the contract is to boost the field’s production over the next two decades.
Along with its partner, China National Petroleum Company (CNPC), BP won the bid in June to rehabilitate the super-giant oilfield near Basra. Currently, Rumaila produces around 1 million barrels of oil a day (b/d). The new venture will see output rise to 2.85 million b/d in the second half of the next decade, which would make it the world’s second largest producing oil field.
Group chief executive, Tony Hayward, welcomed the signature of the contract, saying: “We are delighted to have this opportunity to support the people of Iraq in rebuilding their nation through the redevelopment of one of the world’s greatest oil fields. We see this as the beginning of a long-term relationship with Iraq and we will continue to look for further opportunities.”
With its 38% interest, BP leads the contracting consortium, which includes CNPC and the Iraq government’s representative State Oil Marketing Organisation.
BP and CNPC plan to invest approximately $15 billion in Rumaila; reservoir management technologies will form a major part of this investment to increase oil recovery. The Rumaila Field Operating Organisation (ROO) will manage the expansion project, staffed mainly by employees from Iraq’s state-owned South Oil Company (SOC), along with a small number of technical experts and managers from BP and CNPC.
BP has a long history with Rumaila dating back to its discovery in 1953 and, more recently, has provided technical assistance in the field since 2005 as part of a three-year memorandum of understanding.