BP Iraqi Drilling Contracts
BP (LSE: BP) has offered the lucrative drilling contract for the Rumaila oil field in Iraq, the largest one in the country, and one of the largest oil fields in the world, to several drilling companies. BP and its partner won about $500 million in contracts in the oil field, which will be contracted out to Schlumberger Ltd, Iraqi Drilling Company, Daqing Oil Field Co. Ltd and Weatherford International.
At this time 1.07 million barrels of oil a day are extracted from Rumaila, with a goal to increase that to 1.23 million barrels daily by the end of 2010, or at latest, early 2011. Ultimately they want to produce 2.85 million barrels a day. There are an estimated 17 billion barrels in crude oil reserves in Rumaila.
The group of companies will drill 70 wells this year in the oil field to increase production.
BP has entered several deal recently to build a solid foundation going forward, including in the Gulf of Mexico.
BP and its Chinese partner CNPC signed a 20-year contract to develop the oil field last year.
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