China's CNPC and its partners plan to start drilling new wells next month in Iraq's Halfaya oilfield as part of a plan to boost output to 70,000 barrels per day in 2011, a CNPC executive said on Tuesday, as reported by Reuters.
CNPC has a 37.5 percent interest in the consortium with French oil major Total and Malaysian state firm Petronas.They will recieve a fee of $1.40 per barrel.
The group plans to drill three appraisal wells this year for which it already issued a tender and is now evaluating the bids, the CNPC executive, Yan Shihe, told Reuters. They are planning to reach 70,000 barrels per day from the third quarter of next year.
To reach this target the group aims to drill around 15 new wells next year, he added.
In May, Total said crude oil production from Iraq's Halfaya oilfield would hit 535,000 bpd by 2016, from 3,000 bpd now.
Halfaya, in southern Iraq, has estimated reserves of 4.1 billion barrels of oil. The firms would start recovering costs when output hits 70,000 bpd.