Oil production in Missan [Maysan] will reach 170,000 barrels per day by the end of 2011, compared to 2010’s production of 100,000 bpd, according to a director of the Missan Oil Company on Sunday.

“The 70,000 barrels increase will come from the development of  the Halfaya oil field and the drilling of new wells,” Ali Maarij told Aswat al-Iraq news agency.

“A Chinese company and its consortium of other companies have conducted seismological surveys, removed landmines, and set up three drilling towers in Halfaya, 35 km east of al-Amara city, in a bid to drill more wells,” he said.

The Halfaya field was awarded in Iraq’s second licensing round to CNPC (China), Petronas (Malaysia), and Total (France).

(Sources: Aswat al-Iraq, Ministry of Oil)

PetroChina has invited seven contractors to submit the bidding documents for engineering, procurement and construction work on the first phase of development at the Halfaya oilfield in Iraq in the first week of 2011, the Norway-based energy newspaper Upstream has reported.

The report said the companies invited to participate in the tender include the UK-listed Petrofac, France’s Technip, CH2M Hill of the U.S., China Petroleum Engineering Construction Company (CPECC), Daqing Engineering & Construction of China, and Malaysia’s KNM and Malaysia Marine & Heavy Engineering.

According to the report, CPECC could have an upper hand over other bidders thanks to its status as PetroChina’s sister company under the umbrella of China National Petroleum Corporation (CNPC).

Under the development and production service contract signed with Missan Oil Company in January of 2010, a PetroChina-led consortium aims to kick off production of 70,000 barrels per day from Halfaya in its first phase of commercial production.

PetroChina has a 37.5 percent stake in Halfaya, with 25 percent hel d by Iraqi’s South Oil Company, 18.75 percent by Malaysia’s Petronas and another 18.75 by French giant Total.

(Source: istock Analyst)

The development of Halfaya oilfield in southern Iraq’s Maysan province shall insure enough gas for Kahla’a power station, according to the Director-General of Missan Oil Company, who said that the gas produced from the oil field would exceed 60 million cubic feet.

“The development of the Halfaya field shall secure the needs of the Kahlaa Electric Power Station for the gas it needs to operate it,” Ali Mi’arij told Aswat al-Iraq news agency.

Kahlaa power station, opened earlier this year, has a capacity of 180 megawatts. Its total cost reached US$121 millions, although it has been working below capacity due to several problems, including lacking enough gas to operate it.

According to Missan Oil Company’s Director-General, the final phases to develop the said oil field is expected to reach 535,000 barrels per day, which equals five times Missan’s current production capacity.

The Director of Public Relations and Media in Missan Oil Company, Ali al-Tarfi, told Aswat al-Iraq that the oil reserve of Halfaya Oil Field exceeds 15 billion (b) barrels of oil, adding that the plan to develop it includes the drilling of 300 oil wells, along with the establishment of several gas-isolation stations, and gas storage and treatment facilities.

The field is operated by a consortium of CNPC, Total, and Petronas.

(Source: Aswat al-Iraq)

Companies investing in the al-Halfaya oilfield finalized the construction of residence camps and the setting up of drilling equipment to embark on the project on Dec. 15, according to the Missan Oil Company director on Friday.

“The consortium of Chinese, Malaysian and French companies investing in al-Halfaya oilfield, 25 km [15 miles] east of al-Amara city, completed the logistical and technical preparations for their work,” Ali Maarij told Aswat al-Iraq news agency.

“Drilling will take place at two sites after all relevant equipment is installed there and all 3-D seismological surveys are conducted in the 350-square-kilometers field,” he added.

The Iraqi oil ministry had signed in Baghdad a final contract with a consortium of companies led by China’s CNPC with France’s Total and Malaysia’s Petronas to rehabilitate the Halfaya oilfield, located in the eastern areas of Missan province, 390 km south of the Iraqi capital Baghdad.

Eastern Missan is home to six producer oilfields: al-Bazrakan, Abu Gharb, al-Fekka, al-Halfaya and al-Amara in addition to the Majnoon field, which is a joint one with the South Oil Company (SOC).

There are also five explored non-producer fields: al-Huwayza, al-Rafie, Rafidain al-Sharqi, al-Dujaila and Kemit.

(Source: Aswat al-Iraq)

Iraq is among the countries reportedly boycotting the Nobel Peace Prize ceremony in Oslo.

A Nobel official said that China has been putting unprecedented pressure on a number of countries to stay away from the prize-giving ceremony.

This year’s prize has been won by Liu Xiaobo, who is currently serving an 11-year prison sentence for subversion after co-authoring an appeal calling for reforms to China’s one-party political system.

Chinese companies have extensive interests in Iraq, including the Halfaya oilfield.

(Source: Bloomberg)

Bids are invited from oil service companies to supply two workover rigs for the 4.1 billion barrel Halfaya oilfield.

The tender from state-run Maysan Oil Company, along with the China National Petroleum Company (CNPC), French oil major Total, and Malaysian state firm Petronas, closes on Nov. 28, and the offer must remain valid for 90 days after the bid closing date.

“First drilling is supposed to start in November 2010, and three more drilling rigs are to be mobilized in the near future,” the tender documents obtained by Reuters on Tuesday said.

“Therefore, two 750 HP workover rigs are required for well completion, well testing, acidizing and other workover operations in Halfaya oilfield,” it added.

The contract duration will be for one year and may be extended for another year.

(Source: Reuters)

Total’s Chief Executive, Christophe de Margerie, said on Wednesday that he expected the company’s output in Iraq to grow slowly.

“We are still in an insecure environment,” he said, according to a report from Reuters. “Don’t tell me security is there, don’t tell me that after the departure of certain soldiers that will create more security… The logistics don’t exist,” he said.

Total, together with partners CNPC and Petronas, signed the final contract earlier this year to develop the Halfaya field, which has estimated reserves of 4.1 billion barrels of oil.

(Source: Reuters)

China’s CNPC and its partners have invited bids from energy companies to supply a liquefied petroleum gas (LPG) compressor unit for the 4.1 billion-barrel Halfaya oilfield, according to a report from Reuters.

This is in addition to the tenders we reported on last week.

State-run Maysan [Missan] Oil Company has invited bidders to supply and install a liquefied petroleum gas compressor package within a 30-months period to capture gas being flared at the southern oilfield, according to a company statement obtained by Reuters on Tuesday.

The tender closes on Oct. 9 and the offer stays valid for 90 days after the bid closing date.

The winning company should provide job site services and technical support during installation, start-up and test run of the liquefied petroleum compressor unit, a copy of the bidding document showed.

Liquefied petroleum gas from Halfaya would be transferred to Iraqi state-run South Gas Co. for domestic needs and power generation, an oil official at Maysan Oil Co. said on Tuesday.

(Source: Reuters)