Final Contract for Qurna Oilfield with Exxon, Shell to Be Signed

The Iraqi Ministry of Oil on Monday will sign the final contract with a consortium led by Exxon Mobil Corp and Royal Dutch Shell, under which the firms will be allowed to develop the West Qurna-1 field in southern Iraq.

“The contract aims to increase the field’s production to 2.325 million barrels per day (bpd),” a ministry source told Aswat al-Iraq news agency.

Under the contract, the companies accepted the ministry’s $1.9-per-barrel-payment for additional oil extracted above current production levels.

Iraq hopes the contracts signed during the first two oil licensing rounds will help bring the country’s oil production to 12 million bpd in six years, compared to the current production level of about 2.5 million bpd.

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