Exxon, Baghdad agree new terms for Iraq’s giant field
Baku, Azerbaijan, Feb. 6
By Aygun Badalova -Trend:
Exxon Mobil and Iraq have initialized an agreement to reduce the targeted plateau production for the West Qurna-1 development from 2.825 million barrels per day (bpd) to 1.6 million bpd, International Oil Daily reported with the reference to the of the ministry's Contracts and Licensing directorate Abdul-Mahdy al-Ameedy.
The changes, which were agreed with Iraq's oil ministry, need cabinet approval.
Iraq's proved oil reserves amounted to 150 billion barrels in early 2013, according to BP. The country's oil production increased by 11.2 percent to 3.115 million bpd in 2012.
The main oil fields in Iraq are located in the south of the country. They are Rumaila, Zubair, Nahr Umr, Majnoon and West Qurna. At least 80 percent of the oil produced in Iraq is exported.
Baghdad is seeking to reduce plateaus on all five of its biggest oil projects. To date, it has ratified deals with only Italian Eni on its 850,000 bpd Zubair project and Lukoil for its 1.2 million bpd West Qurna-2 development.
Ameedy told International Oil Daily that the West Qurna-2 contract adjustments include lengthening the contractual plateau production duration from seven to 10 years and lengthening the 20-year contract duration with a "five-year extension, but with an option to extend the term beyond 25 years.
New plateau target for Majnoon field, where Shell is a lead operator, is 1-1.2 million bpd compared to original plateau target of 1.8 million bpd. New plateau target for Rumaila field with BP as a lead operator is 2.1 million bps compared to original plateau target 2.85 million bpd