By Simon Kent.
Iraq is developing a new strategy for its southern oil fields in relation to the ongoing Common Sea Water Supply Facility project, which opened bidding for completion last year.
ExxonMobil and PetroChina were approached to invest in the critical strategic water injection project, which has been long delayed.
In a statement to Reuters, Iraq's South Oil Company deputy chairman Basim Abdul Kareem said that the new water injection project will also target smaller fields in southern Iraq, such as the Nasiriyah field, in the hope of raising the output of these fields by around 100,000 barrels, to 350,000 bpd.
The project's main goal, to boost production at the giant fields of Majnoon, Rumaila, West Qurna and Zubair, will continue, operated by the major IOCs who are working on those fields--BP, Shell, Eni and Lukoil.
Abdul Kareem noted that any new contracts would not be service contracts, and that they would be designed to be beneficial to all under low price scenarios.
(Oil drilling rig image via shutterstock)