China to Drill 30 New Wells at Halfaya by End-2012

The head of the state-run Missan Oil Company, Ali Maarij, has said that the China Petroleum Engineering & Construction Corporation (CPECC), the engineering and construction subsidiary of the China National Petroleum Company (CNPC), has drilled 13 new wells at the Halfaya oil field, and plans to drill 17 more by the end of the year, according to the Azzaman news agency.

With reserves estimated at 15 billion barrels of oil, in addition to significant gas reserves, Halfaya is one of Iraq’s largest oil fields. It is being developed by CNPC, France’s Total, and Malaysia's Petronas, under a deal that gives them $1.40 per barrel.

CPECC won the $174 million contract last year to build 'crude processors' and dig new wells as part of the overall strategy by the Halfaya partners to eventually boost output to more than 500,000 bpd. Some of the new wells reportedly produce as much as 5,000 bpd.

Maarij said Halfaya was expected to add more than 70,000 bpd to national output by the end of 2012.

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