Zubair field hits peak output target

Eni has said that production in Iraq's Zubair field has reached its peak output target of 1.2 million b/d. The field, which is already profitable, is divvied up between Missan Oil Company (25%), Eni (32.81%) Occidental Petroleum (23.44%) and Kogas (18.75%).

According to Eni output at Zubair has reached 201,000 b/d, showing a 9.8 per cent rise from when the service contract commenced on 18th February 2010. Zubair, one of the biggest oil fields in Iraq, is located near Basra in the south of the country.

"The consortium's contract cost recovery commences, with the group earning a remuneration fee of $2 per barrel on incremental production," said Eni in a statement.

For more news and expert analysis about Iraq, please see Iraq Focus.

© 2010 Menas Associates

Iraqi Kurds prohibited to use Iraq-Turkey pipeline

Iraq's Oil Minister Hussain Al-Shahristani has signed and agreement with Turkey prohibiting Iraqi Kurds to export oil internationally without central government's approval. Under the agreement, Turkey is to bar the flow of Kurdish oil via the joint pipeline unless authorised by the Iraqi government.

The pipeline currently carries around 600, 000 barrels of Iraqi oil, from Kirkuk to the Turkish depot on the Mediterranean, and is the only available means for the Iraqi Kurds to export their oil to international markets.

According to national sources, the Kurds have the capacity to produce around 100,000 b/d, but have so far failed to reach an agreement with the central government about the use of the pipeline.

Several international oil companies have made deals with the Kurds to develop oil fields in their region. However, Iraqi government has made it clear that all such deals are deemed illegal since they were signed without the government's approval.

Source: Azzaman

For more news and expert analysis about Iraq, please see Iraq Focus.

Iraq, Shell and Petronas award a 15 well contract to Halliburton

Iraq, Shell and Petronas has awarded Halliburton a contract to drill 15 oil wells in Iraq's Majnoon oil field, while Petrofac secured a contract to develop two new crude processing plants with a capacity of 50,000 b/d each and to rehabilitate the existing crude oil plant.

"These contracts are part of implementing the preliminary plan to develop Majnoon oilfield for the next two years," said an Iraq oil industry official.

Shell and Petronas, who signed a contract to develop Majnoon oil field earlier this year, hope that their current output of 45,000 b/d will eventually increase to 1.8 million b/d.

Petrofac was awarded a two-year contract to build and develop Iraq's oil and gas infrastructure, as well as build new storage and export turbines for the oil field.

The contracts awarded to a number of international oil companies are expected to boost Majnoon's output capacity to 12 million b/d within seven years.

Source: Reuters

For more news and expert analysis about Iraq, please see Iraq Focus.