BP Weighs 1m bpd Output Target Cut at Rumaila Field

Source: Reuters 6/20/2013, Location: Middle East

Oil major BP is weighing cuts of more than 1 million barrels per day in targetted peak output at Iraq's most prolific oilfield, Rumaila, its chief executive said, as Baghdad aims to pump at lower rates so resources will last longer.

"It is something the government has asked us to do," Bob Dudley said in the Russian city of St. Petersburg on the sidelines of the Rosneft annual general meeting.

Baghdad is lowering plateau production rates at core southern oilfields, including Rumaila, in line with a more realistic target of 9 million barrels per day, versus an original 12 million to be reached by 2017.

But Iraq and Western oil experts say reaching even the 9 million rate will be a stretch given infrastructure constraints.

One set of scenarios for Rumaila ranges from 1.7 million-2.4 million barrels per day (bpd), while the current target of 2.85 million bpd is still "mentioned" but the peaks would differ over time in different scenarios, Dudley said.

A Rumaila oilfield executive said last month it would produce 1.45 million bpd at the end of this year from current rates of around 1.4 million.

BP has been in talks about the reduction at Rumaila since last year. In December, oil ministry and industry sources said BP was close to reaching a deal to cut Rumaila's target to between 1.8 million and 2.2 million bpd.

Rumaila, which BP operates with China National Petroleum Corp. (CNPC), has estimated reserves of around 17 billion barrels and produces the largest single contribution to Iraq's total output.

Dudley took a seat on Rosneft's board on Thursday after BP's purchase of a 20 percent stake in the state owned Russian oil producer, which holds the world's largest crude oil reserves among listed companies.

Iraq, which in 2009 awarded a series of service contracts with international companies to tap its oilfields, is aiming to produce 3.4 million bpd by the end of this year, up from around 3.1 million bpd now.

"I think it's doable," Dudley said, adding that hitting next year's higher output target would depend on infrastructure developments. Iraq wants to produce 4.5 million bpd by the end of 2014.

The ministry of oil has already agreed lower production targets for Lukoil at West Qurna-2 and Eni at Zubair. Negotiations are continuing with Royal Dutch Shell at Majnoon and Exxon at West Qurna-1.

BP is boosting spending at Rumaila to $2.85 billion this year, under a stepped-up drilling programme, after expenditure of $1.9 billion last year.

For more information about related Opportunities and Key Players visit Iraq Oil and Gas Projects


Australia >>  7/4/2022 - Jadestone Energy plc, an independent oil and gas production company focused on the Asia-Pacific region, provides the following update on operations at...
United Kingdom >>  7/4/2022 - IOG plc, the Net Zero UK gas and infrastructure operator focused on high return projects, has released an updated Investor Presentation incorporating ...

Kuwait >>  6/30/2022 - Dr. Muhammad Abdul Latif Al-Fares, His Excellency the Deputy Prime Minister, Minister of Oil, and Minister of State for Council Affairs, led the State...
Kuwait >>  6/30/2022 - Today, Thursday, the members of the (OPEC +) coalition decided to increase output by 648,000 barrels per day in August. Following the 30th ministerial...

Norway >>  6/30/2022 - The authorities have granted consent to start production from the Nova field in the North Sea. Nova will be developed with two seabed templates, one f...
United Kingdom >>  6/30/2022 - Serica Energy plc, announces that at the Annual General Meeting today, presentations will be made by both the Chairman, Tony Craven Walker, and the Ch...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 


Gulf Oil and Gas
Copyright 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.