PetroChina, Exxon Approached to Boost Production

By John Lee.

Iraq has reportedly approached PetroChina and ExxonMobil about investing in a multi-billion dollar project to help boost output from a number of smaller southern fields.

The Deputy Chairman of the South Oil Company (SOC), Basim Abdul Kareem, told Reuters that the "Integrated South Project" consists of building oil pipelines, storage facilities and a seawater supply project to inject water from the Gulf to maintain pressure and enhance oil recovery.

The project targets the Luhais, Nassiriya, Tuba, Nahr Bin Umar and Artawi oilfields, which are currently producing about 240,000 bpd currently and SOC's initial plan calls for raising that to about 350,000 bpd in 2016.

Petrochina has shown more interest than ExxonMobil in the project, according to another SOC official who declined to be identified.

(Sources: Reuters)

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