| | | In June 1997, Al-waha Petroleum Co., Ltd, a joint venture of CNPC and China North Industries Corporation, signed an agreement with Iraq's Saddam Hussein government to develop the al-Ahdab oil field, which was postponed by the UN sanctions on Iraq and the following U.S.-led invasion to the oil-rich state. In November 2008, CNPC signed a Development Service Contract of Al-Ahdab Oilfield with Iraq's Ministry of Oil.
In the first and second rounds of international oil/gas bidding in 2009, CNPC joined forces with BP in winning the operating rights to Rumaila, and with Total and Petronas in winning the contract for Halfaya. 2010 saw the advancement of our joint projects in Al-Ahdab, Rumaila, and Halfaya oilfields.
Al-Ahdab Oilfield
Located 180 kilometers southeast to Iraq's capital city of Bagdad, Al-Ahdab Oilfield has a structural area of about 200 square kilometers. As stipulated in the contract, CNPC will apply advanced development technologies to meet the benchmarks of 25,000 barrels/day of oil within the first three years and 115,000 barrels/day of oil by the end of sixth year. After the oilfield go on stream, it will supply some of the produced oil to fuel the nearby power plants to ease the power shortage in Iraq.
In 2009, seismic exploration and drilling operation had been deployed in Al-Ahdab Oilfield. We commenced capacity building and surface work in 2010. Massive well drilling resulted in the spud-in of 27 wells and the completion of 24 wells throughout the year. A total length of 201km of three export pipelines was welded in 2010. The operating area, living camp, and logistics and service area took shape. 1,703 jobs, or 58% of the total, were locally staffed.
Rumaila Oilfield
Rumaila Oilfield is located 50 kilometers west to Basra in South Iraq, covering an area of 1,800 square kilometers. Discovered in 1953 and been operational in 1972, Rumaila is the largest oilfield in Iraq and the 6th in the world, with oil reserves of about 17 billion barrels.
On November 3, 2009, CNPC, and British Petroleum (BP), inked a technical service contract with Iraq's State Oil Marketing Organization (SOMO) and South Oil Company (SOC) in Baghdad to expand production Iraq's Rumaila Oilfield. CNPC and its partners will expand Rumaila's daily productivity to 2.85 million barrels from the current 1.1 million during a six year period, which will help Iraq rebuild its economy.
In 2010, the Rumaila Field Operating Organization (ROO), a consortium by CNPC, BP and Iraq's South Oil Company, took over operation management and commenced operation in the oilfield. Over the course of the year, a total of 41 wells were drilled, 103 workovers completed, and 122km of flowlines laid. The initially targeted 10% increase of daily oil production was met in December, 2010, thanks to the commencement of production at new wells and optimization of production parameters.
Halfaya Oilfield
Halfaya oilfield, situated in southern Iraq, has estimated reserves of 4.1 billion barrels of oil. In the second round of international oil/gas bidding in Iraq in 2009, CNPC joined forces with Total and Petronas in winning the contract for Halfaya.
In January 2010, the service contract was formally signed for the Halfaya Oilfield, which is operated by CNPC in consortium with Total, Petronas, and Iraq's Missan Oil. The terms of the contract require the consortium to increase daily output to 535,000 barrels per day, with CNPC as the operator. In December 2010, 3D seismic acquisition was formally commenced and the first batch of three horizontal appraisal wells with the designed depth of more than 4,000m were spud in.
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| | | | CNPC provides a range of oilfield services in Iraq, including seismic data acquisition, well drilling, well logging and testing.
In June 2005, CNPC signed a contract with Norway's DNO on drilling 3+6 wells with a "50D" drilling rig. We entered the market in northern Iraq at the end of 2005 and provide well logging and testing services to DNO and ADDAX. In 2006, CNPC completed two seismic data acquisition projects for DNO.
In 2009, seismic exploration and drilling operation had been deployed in Iraq’s Ahdab Oilfield. The first horizontal well AD010H completed at a depth of 3,550 meters, with the horizontal interval of 848 meters. The core recovery rate reached 97.58%, the highest in the region. |
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| | | | While operating our businesses in Iraq, we respect local traditions, customs and religions and have always been willing to better understand local cultures. We have also been proactively supporting social welfares of hosting places.
On September 3, 2010, we gave holiday gifts to children at Basra orphanage and provided air-conditioners, stationery and recreational items in order to improve their living and learning conditions. |
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| | | | Jul. 1, 2010 The operation management rights of Rumaila project was officially handed over to ROO, which is jointly established by BP, CNPC and Iraq South Oil Company.
Jan. 27, 2010 PetroChina, a holding company of CNPC, formed a consortium with Total, Petronas and Iraq South Oil Company in signing a 20-year development and production service contract with Iraq’s Missan Oil for Halfaya Oilfield. PetroChina owns 37.5% of the equity and acts as the operator.
Dec. 11, 2009 At the second round of international bidding for Iraqi oil and gas fields, a consortium by CNPC, Total and Petronas wins the Halfya oil field service contract.
Nov. 3, 2009 A service contract for Rumaila oilfield was signed between CNPC, BP and Iraq's State Oil Marketing Organization (SOMO) in Baghdad. |
| | | | | Jun 30, 2009 The China National Petroleum Corporation (CNPC)/BP alliance is awarded a tender in the first round of the international bidding for Iraq's oil & gas fields. The two bidders jointly win a service contract to develop Iraq's Rumaila oilfield.
Jun. 30, 2009 CNPC/BP alliance was awarded a tender in the first round of the international bidding for Iraq's oil & gas fields. The two bidders jointly won a service contract to develop Iraq's Rumaila oilfield.
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| | | | Nov. 10, 2008 A service agreement is signed with Iraq's Ministry of Petroleum on the development of the Al-Ahdab Oilfield. Under the agreement, CNPC will increase the oilfield's production capacity to 25,000 barrels per day within three years, and to 115,000 barrels per day within six years. |
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