BP to Raise Iraq Output by 100,000 bpd

British oil major BP, along with its partner China National Petroleum Corp, plans to increase production from Iraq's Rumaila oil field by more than 100,000 barrels a day at the beginning of next year, a BP executive said Sunday, according to a report in the Wall Street Journal.

"Initial production will go up by 10% (at the) beginning of 2011," Michael Townshend, president of BP Iraq, told a two-day symposium held by the Iraqi oil ministry in Baghdad to discuss the co-ordination and implementation of the country's oil expansion plans.

Two oil licensing auctions last year awarded 11 deals to international oil companies that promise to add nearly 10 million barrels a day of capacity to Iraq's existing 2.5 million barrels a day by 2017.

The Rumaila field, with some 17 billion barrels of proven oil reserves, is currently producing 1.07 million barrels a day.

The BP-led consortium has pledged to almost triple production at the field to 2.85 million barrels a day in six years.

BP holds a 38% stake in the venture, while CNPC has 37% and Iraq's state-run South Oil Co. the remaining 25%. The three contractors will receive a fixed fee of $2 for each additional barrel of oil produced from Rumaila.

Rumaila also has the potential to produce 1 billion cubic feet of gas a day, Townshend said.

(Source: Wall Street Journal)

(Picture: BP Rumaila)

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