Rumaila Oil Output up 10% by End of Year

On July 1, the operational management of Iraq's Rumaila project was officially transferred to Rumaila Field Operating Organization (ROO), a consortium led by CNPC, BP and Iraq's South Oil Company.

On July 3, BP, CNPC and Iraq's South Oil Company held a ceremony at Basra to mark the transfer. More than 130 representatives from the three companies as well as from Iraqi government, the oil ministry and concerned sectors of the community attended the ceremony, which marks the consortium's official taking over of the oilfield.

BP and CNPC signed a 20-year service contract with Iraq in November to increase Rumaila’s output to 2.85 million barrels a day, making it the world’s second-largest producing oilfield. Iraq intends to raise oil production to 6 million bpd by 2015 to boost its war-ravaged economy.

The contract was the only oilfield deal awarded by Iraq in June 2009 in the first bidding round since the U.S.-led invasion in 2003.

(Sources: CNPC, Bloomberg)

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