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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 of Iraq's Rumaila Oilfield after the successful bid for the contract on June 30. This is CNPC's largest overseas cooperation project with international oil company. |
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| | Under the contract, CNPC holds 37 percent stake, BP holds 38 percent stake and SOMO holds 25 percent stake. The three parties will establish a consortium — the Rumaila Field Operating Organization (ROO), to take over oilfield operation within a year. 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, and receive USD 2 per barrel from the extra daily output over the contract speculated.
CNPC regards the co-development of Rumaila Oilfield an opportunity to help Iraq rebuild its economy. Currently, Iraq produces 2.2 million barrels of crude, only 48 percent of the peak production, due to years of war and sanction. Through this rehabilitation and expansion project for Rumaila Oilfield, Iraq's crude production could be increased by 75 percent. CNPC's expertise in developing some domestic fields, which have the similar geological characteristics with Rumaila, will certainly facilitate the efficient rejuvenation of the super-giant field. Furthermore, CNPC will provide training opportunities for local workers in Rumaila. |
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