Rumaila oil field
| Rumaila | |
|---|---|
 Oil fire at the Rumaila oil field in 2003 |
|
 |
|
| Country | Iraq |
| Location | Basra Governorate |
| Offshore/onshore | onshore |
| Coordinates | 30°09′22″N 47°24′28″E / 30.156112°N 47.407722°ECoordinates: 30°09′22″N 47°24′28″E / 30.156112°N 47.407722°E |
| Operator(s) | BP |
| Partners | BP (38%), CNPC (37%), State Oil Marketing Organization (SOMO) (25%) |
| Field history | |
| Discovery | 1953 |
| Production | |
| Current production of oil | 960,000 barrels per day (~4.8×107 t/a) |
| Estimated oil in place | 17,000 million barrels (~2.3×109 t) |
| Producing formations | Zubair of Hautervian & Barremian age[1] |
The Rumaila oil field is a giant oil field located in southern Iraq, approximately 20 mi (32 km) from the Kuwaiti border.[2] The dispute between Iraq and Kuwait over allegedly slant-drilling in the field was one of reasons for Iraq's invasion of Kuwait in 1990.[3] This field was discovered by British Petroleum (BP) in 1953.[4] Under Saddam Hussein, it was nationalized by Iraq. Since then, this massive oil field remains under Iraqi control. Rumaila is considered the fourth largest field in the world.[5]
The field is estimated to contain some 15% of Iraq's oil reserves.[citation needed]
Contents |
[edit] Ownership
The field is owned by Iraq and subcontracted to BP and CNPC under Iraq Producing Field Technical Service Contract (PFTSC).[1][2] BP is an operator of the project with 38% while CNPC and SOMO hold 37% and 25%, respectively.[6] BP and CNPC will recover a renumerated fee of $2 per barrel in profits which will account to 15 to 20% rate of return on investment. Iraqi government and BP agreed to cut the initial bidding price per barrel from $3.99 to $2.00 in June 2009. ExxonMobil which also bid on servicing this field at a price $4.80 walked away due to price cutting terms by the Iraqi Government leaving BP and CNPC as winners of the contract.[7][8][9] BP expects the costs will begin to be recovered after the production will be raised by 10% from the current output. The rehabilitation and expansion project will be managed by Rumaila Field Operating Organization (ROO) which will be staffed mainly from TEKFEN and smaller number of experts from BP and CNPC.[6][10]
An estimated $15 billion will be spent on enhancing the operations at Rumaila over the next 20 years.[5]
[edit] Production
As of June 2010, the field produces 960,000 barrels per day (153,000 m3/d) making up 40% of Iraq's oil production of 2.4 million barrels per day (380,000 m3/d).[11] Currently ~200 production wells are operating at Rumaila. BP and CNPC intend to raise the production to 2.85 million barrels per day (453,000 m3/d) within the next six years. Once this production milestone is reached, Rumaila will become the second largest oil field in the world after the Saudi Arabian Ghawar oil field.[5]
- Drilling contracts
In early 2010, BP subcontracted deals valued at around $500 million to Weatherford International, consortium of Schlumberger and Iraqi Drilling Co, and Daqing Oilfield Company Limited from China to drill 49 new wells at Rumaila. Weatherford is going to drill seven wells while partnership of Schlumberger and Iraqi Drilling Co, and Daqing Oil Field Co will drill 21 wells each.[12]
In February 2011, Conceptual Design, Front End Engineering Design (FEED), Minimum Work Obligations and Integrated Project Management Team (IPMT) services contract was awarded to WorleyParsons
[edit] Reservoir
Rumaila reportedly holds an estimated 17 billion barrels (2.7×109 m3) of oil. The oil sits approximately 2,400 m (7,900 ft) below the surface which is considered an easy target for production.[2]
[edit] Importance in Gulf War
Rumalia oil field was critical in the Gulf War. Iraq, after accusing Kuwait of side-drilling launched an attack on Kuwait soils that were allegedly drilling under Iraqi soil.[citation needed]
[edit] See also
[edit] References
- ^ a b Michael C Daly (2010-02-16). "BP in Rumaila". http://www.bp.com/genericarticle.do?categoryId=98&contentId=7059849. Retrieved 2010-06-24.
- ^ a b c Master Sgt. David Bennett (2010-06-12). "Delegation sees Iraq oil field up close". US Army. http://www.army.mil/-news/2010/06/12/40744-delegation-sees-iraq-oil-field-up-close/. Retrieved 2010-06-24.
- ^ Thomas C. Hayes, CONFRONTATION IN THE GULF; The Oilfield Lying Below the Iraq-Kuwait Dispute, The New York Times, September 3, 1990
- ^ Carola Hoyos, Rumaila field fires up BP's hopes in Iraq, "FT", July 3, 2009
- ^ a b c Christopher Helman (2010-01-21). "The World's Biggest Oil Reserves. Chances are your energy needs are going to flow from one of these 10 fields in the future". Forbes. http://www.forbes.com/2010/01/21/biggest-oil-fields-business-energy-oil-fields.html. Retrieved 2010-06-24.
- ^ a b "BP and CNPC to Develop Iraq's Super-Giant Rumaila Field" (Press release). BP. 2009-11-03. http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7057650. Retrieved 2010-06-24.
- ^ Stanley Reed (2010-06-30). "Iraq's Oil-Field Auction Falls Short". Bloomberg Businessweek. http://www.businessweek.com/globalbiz/content/jun2009/gb20090630_369168.htm. Retrieved 2010-06-24.
- ^ "The $40 Billion Opportunity In Iraq". Business Insider. 2010-04-26. http://www.businessinsider.com/investing-in-iraq-oil-fields-2010-4. Retrieved 2010-06-24.
- ^ DiPaola, Anthony; Gismatullin, Eduard (2009-07-28). "BP Says Return on Iraq’s Rumaila to Compare With World Fields". Bloomberg. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aM0oM8QAzEDE. Retrieved 2010-06-24.
- ^ "BP, CNPC sign contract to develop Iraq's Rumaila field". RIA Novosti. 2009-11-03. http://en.rian.ru/business/20091103/156702611.html. Retrieved 2010-06-24.
- ^ Ahmed Rasheed (2009-10-09). "Iraq signs deal with BP, CNPC for Rumaila field". Reuters. http://www.reuters.com/article/idUSL820863520091008. Retrieved 2010-06-24.
- ^ Hassan Hafidh (2010-03-30). "BP Awards 3 Drilling Deals for Iraq's Rumaila Field". Rigzone. http://www.rigzone.com/news/article.asp?a_id=90253. Retrieved 2010-06-24.
