Eni SpA and its partners, Missan Oil Company, Occidental Petroleum, and Korea Gas Corp (KOGAS), have reached a key production target at Iraq’s Zubair oil field.
Production at the field near the city of Basra has increased to 201,000 barrels a day from 183,000 when Eni and its partners took over management of the field in February, the Rome-based company said in a statement.
“With this successful increase in production, the consortium’s contract cost recovery commences, with the group additionally earning a remuneration fee of $2 per barrel on incremental oil production,” Eni said.
The Eni-led group said it plans to boost production at the field to 1.2 million barrels a day within six years and maintain that level for another seven years.
Eni controls almost 33% of the group managing the project, while Iraq’s Missan Oil Co. owns 25%, Occidental Petroleum Corp. has 23%and Korea Gas Corp. holds almost 19%, Eni said.