BP Partners Net Iraq Oilfield Contracts Worth $500m

BP has announced the first major contracts involving its partners on the rehabilitation of the Rumaila field in Southern Iraq. Three contractor groups were selected for drilling wells, worth a total of around $500 million, and will provide seven additional drilling rigs from the second half of 2010.

The contracts will be awarded to:
- Schlumberger in partnership with the Iraqi Drilling Company has been awarded contracts for three rigs
- Daqing Drilling has also been awarded contracts for three rigs
- Weatherford has been awarded a contract for one rig

These contracts supplement drilling contracts already in place on Rumaila provided by the Iraqi Drilling Company and Weatherford. We expect around 70 wells to be drilled on Rumaila this year.

Two two-year contracts, worth a total of around $100 million, have been awarded for the supply and installation of electrical submersible pumps (ESPs) and associated services to Centrilift, Al-Khorayef Petroleum. Cameron will supply the associated trees and wellheads.

The contractors were selected after a competitive bidding process and the awards endorsed on 24 March in Basra by the members of the Rumaila Joint Management Committee comprising BP, CNPC, the Iraqi State Oil Marketing Organisation and the South Oil Co.

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