Output at Iraq’s Zubair oilfield has reached 265,000 bpd compared to baseline production of 184,000 bpd and Italy’s Eni and its partners can start to recover investment costs, an oil official said on Wednesday, according to a report from Reuters.
The service contracts that Iraq awarded to international oil companies stipulate that the firms start to be paid once they boost production by 10 percent. Both the Eni group working Zubair and BP and CNPC developing Rumaila have passed the milestone, said Abdul-Mahdy al-Ameedi, head of the Oil Ministry’s licensing and contracting office.
“Both Eni and BP are qualified to retrieve investment costs,” Ameedi told Reuters. “We will pay them this year.”