By John Lee.
PetroChina and its partners Total and Petronas said on Wednesday that oil production has started at the Halfaya oil field in southern Iraq.
Iraqi Oil Minister Abdul-Karim Elaibi [Luaibi] said the field will produce 100,000 barrels a day and reach 535,000 bpd in 2016. The consortium will be paid $1.40 for each barrel of oil they extract.
PetroChina, a subsidiary of China National Petroleum Corp (CNPC), China's largest energy producer, holds 37.5% of the consortium, while Total and Petronas each hold a 18.75% stake in the consortium, with Iraq's state partner holding the remaining 25%.
So far, PetroChina has invested $700 million in Halfaya and the investment is expected to reach $1 billion by the end of this year, said Adnan Sajet, head of the joint-management committee of the field.
Six rigs and 2,000 Iraqis are employed at the site. 22 new wells have been drilled in the field. Five wells existed before PetroChina started work on the project.
Bloomberg puts the reserves of the field at 4.945 billion barrels, while NINA reports 3.8 billion barrels, and both Dow Jones and AIN report reserves at 16 billion barrels.
(Sources: Dow Jones, Bloomberg, NINA, AIN)