23 May 2010 – Forex Yard
Iraq expects output at its Nassiriya oilfield to hit 100,000 barrels per day (bpd) in 2014, the head of state-run South Oil Co. (SOC) said on Friday, after the OPEC member decided to develop the field on its own.
Current output from Nassiriya is 10,000 bpd, and SOC’s plan is to raise it to 50,000 bpd next year, Dhiya Jaafar, head of SOC, told Reuters in an interview in the southern oil hub of Basra.
Iraq decided to develop the Nassiriya oilfield on its own after months of talks with a Japanese group led by Nippon Oil Corp reached a dead-end over financing issues.
The largely undeveloped Nassiriya field is listed as having reserves of under 5 billion barrels.
“We are planning to boost production from Nassiriya from 10,000 bpd to 100,000 bpd in 2014 through national efforts,” he said.
To reach that target, SOC plans to drill about 10 new oil wells in Nassiriya this year, which would boost production to 50,000 bpd by the second half of next year, Jaafar said.
“We have plans to drill more wells in Nassiriya and build new crude processing plants with a capacity of 50,000 bpd,” he added.
Iraq is also in the final stages of starting production of oil and by-produced gas from Safwan oilfield, also known as Safwan Dome, a field shared with Kuwait.
“We expect by next week to finish the building of a 20-mile long pipeline to transform gas from Safwan field to a main gas processor station,” Jaafar said.
Safwan oilfield is expected to start pumping more than 8,000 bpd in June, he added.
Iraq has not concluded any agreement setting out the technical and legal mechanisms to invest in oilfields shared by the two countries.