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PetroChina has invited seven contractors to submit the bidding documents for engineering, procurement and construction work on the first phase of development at the Halfaya oilfield in Iraq in the first week of 2011, the Norway-based energy newspaper Upstream has reported.

The report said the companies invited to participate in the tender include the UK-listed Petrofac, France's Technip, CH2M Hill of the U.S., China Petroleum Engineering Construction Company (CPECC), Daqing Engineering & Construction of China, and Malaysia's KNM and Malaysia Marine & Heavy Engineering.

According to the report, CPECC could have an upper hand over other bidders thanks to its status as PetroChina's sister company under the umbrella of China National Petroleum Corporation (CNPC).

Under the development and production service contract signed with Missan Oil Company in January of 2010, a PetroChina-led consortium aims to kick off production of 70,000 barrels per day from Halfaya in its first phase of commercial production.

PetroChina has a 37.5 percent stake in Halfaya, with 25 percent hel d by Iraqi's South Oil Company, 18.75 percent by Malaysia's Petronas and another 18.75 by French giant Total.

(Source: istock Analyst)

As the lead contractor for the development of the super-giant Rumaila field in Southern Iraq, and on behalf of partners PetroChina Company Limited and the Oil Marketing Company of the Republic of Iraq, BP Iraq NV will be holding a Share Fair event at the Conrad Hotel in Istanbul on 22 November 2010.

The objective of this Share Fair event is to provide information to the Global/Local contractor communities on plans to rehabilitate the Rumaila field and specifically on the selection process for following types of contracts:-

• Engineering and Project Management Services (EPMS): scope shall include detailed design and engineering of certain facilities at Rumaila; procurement for and on behalf of BP and its partners; logistics management; and site construction management activities.
• Engineering, Procurement and Construction (EPC): Scope shall include design, procurement, installation and commissioning of discrete packages of work.
• Construction: Scope shall include construction and installation works only. May extend to include the supply of some materials.

Due to the high interest shown by the contracting community in attending this event, it is expected that invitations will be restricted to EPMS, EPC and Construction contractors with the capability to support large scale project activities. To this end, when expressing interest to attend this event, contractors are requested to advise proposed attendees (names and positions) and provide a brief company profile and a summary of your statement of accounts for the last 3 years.

Key dates for this event are as follows:-

• Closing date for expression of interest to attend the Share Fair event - 20 Oct 2010
• BP to issue formal invitations - 1 Nov 2010
• Share Fair event - 22 Nov 2010

After the Share Fair, Contractors will be invited to declare, via an Expression of Interest process, if they wish to be considered further. A prequalification and competitive bidding process will then be implemented to select the best value Contractors to support the development of the Rumaila field.

Registration of interest should be made via [email protected].

Further information regarding the event and registration can also be found at www.rooevents.com

Note: Attendance at this Share Fair event is strictly by invitation only and all costs incurred shall be to each Contractor's own account. BP and its Partners reserve the right to modify or cancel the procurement process described above at any time.

Please click here to see a presentation on the consortium's plans for Rumaila.

PetroChina , the world's second-most valuable oil and gas producer after Exxon Mobil Corp, said on Thursday that it wants to further strengthen relationships with Iraq as it looks for new sources of oil. It is also focusing on Venezuela and Kazakhstan.

The company was also in discussions for cooperation agreements with BP in the refining sector, executives told a media briefing after reporting quarterly results, according to a report from Reuters.

Earlier in the day, PetroChina posted a 4.2 percent rise in quarterly earnings, its best since the fourth quarter of 2008, as higher oil prices and stronger production offset weak refining margins.

(Source: Reuters)

22 June 2010 (Source: PressReleaseNetwork.com)

For the first time in more than three decades, two oil and gas exploration license bidding rounds took place in Iraq in 2009. The first round saw a consortium consisting of the UK's BP and China's CNPC spearheading IOC activities as they won the first 20 year service contract to develop Iraq's Rumaila oil field, which holding 17.8 billion barrels in crude reserves, is Iraq's largest oilfield and one of the largest in the world.

The Energy Exchange catches up with Michael Towshend, BP President of Iraq ahead of the Iraq 2010: Future Energy conference.

The Energy Exchange: It has been sometime now since BP and CNPC were first awarded the 20 year service contract for Rumaila, can you briefly tell us, how are thing progressing? What in your opinion would you say were the main obstacles that you faced being the first IOC to enter Iraq from such an auction?

Michael Townshend: It is now six months since the contract became effective and much work has been achieved. The Joint Management Committee has been formed and is meeting regularly with partners of South Oil Company (SOC), PetroChina and SOMO. Along with the initial production rate, the annual work programme and budget was approved early on. Key contracts have been awarded and plans are in place to double the activity in the field towards the end of the year. Key appointments have been made at the senior and team leader level and from July the Rumaila Operating Organisation will be established which will run the Rumaila field.

It's been a great opportunity for BP and our partners. We have worked on Rumaila for a long time in the past and know the field well, plus over this last six months we have spent time working closely with SOC and PetroChina to develop plans to increase the field production over time.

The Energy Exchange: You teamed up with CNPC (PetroChina) for the consortium. Were there any major factors that they brought to the table which complimented BP and will help in the development of the field?

Michael Townshend: BP, SOC and PetroChina have complementary strengths. All world class companies, with SOC having deep expertise in running Rumaila, Petrochina with an already established presence in Iraq and access to a diverse and competitive supply chain.

The Energy Exchange: An important role of the IOC working in Iraq today is that of information and knowledge transfer through employment opportunities, training and best practice knowledge sharing. On Rumaila, are BP actively working with local companies and actively encouraging the local workforce to work in the oil and gas sector?

Michael Townshend: One of the largest direct employment and training opportunities will come through the 3,000 plus SOC staff that are transferred into the Rumaila Operating Organisation which will run the field. In addition and from the start Iraqi companies will have the opportunity to participate. Recently the Iraq Drilling Company won the tender for the supply of rigs and associated services for the field. In addition the Base camp being constructed is mostly through Iraqi companies.

In terms of training we have already started working with the British Council, undertaking preliminary English language needs assessment for staff working on Rumaila. Its still early days though and over the course of the next year we will start to develop more comprehensive programmes.

The Energy Exchange: In terms of getting to grips with production from Rumaila, what role are both the local and international technology and service providers playing in helping you to increase oilfield performance? Are you finding the technology needed locally or is there a requirement for international support?

Michael Townshend: It's not a question of either/or. The point about the contracts was to bring the best of local experience and knowledge with expertise from around the world. The recently awarded drilling contracts are an example of this where we have a mixture of international and local companies.

The Energy Exchange: Through the Rumaila field, do you envisage further opportunities to diversify within Iraq? Will BP become involved in downstream operations focusing upon refinery and petrochemical mega projects or do you see your efforts remaining mainly in upstream projects?

Michael Townshend: Our priority is Rumaila. This is a giant field and worthy of our full attention. We are a long term partner of Iraq and although we have other activities in the country, and will always look for other opportunities, the Rumaila field rightly deserves our foremost focus.

22 March 2010 (Upstreamonline.com )

PetroChina will be targeting Iraq and Iran and is looking to focus on five projects — the Ahdab, Rumaila and Halfaya oilfields in Iraq, and the North Azadegan and Masjed-i-Suleiman fields in Iran.

Company chairman Jiang Jiemin said entering the Middle East market had been the ambition of several generations of Chinese oilmen, given the region’s importance in the oil and gas industry.

PetroChina and Iraqi officials met in Abu Dhabi in January to discuss the development of three Iraqi oil and gas fields, which have given PetroChina access to total estimated reserves of more than 20 billion barrels.

Jiang said the development of Halfaya will start in the second of half of this year. The company now owns a 37.5% stake, with French giant Total and Malaysia’s Petronas each holding a 18.75% stake and the 25% balance held by Iraq’s South Oil Company.

Meanwhile, PetroChina has started drilling at Iran’s South Pars gas project to evaluate the reserves for the field’s Phase 11 development, though limited access to key liquefying gas technologies due to US sanctions is proving problematic.

The new initiative is part of the company’s long-term strategy to triple its foreign hydrocarbon production to 200 million tonnes of oil and gas equivalent by 2015 or beyond. A similar volume will be also produced from PetroChina’s domestic fields.

Last year, Chinese companies produced a total of 110 million tonnes of oil and gas equivalent, 50% of which was equity oil from increased acquisitions of foreign upstream assets.

Last year, China concluded 11 foreign acquisition deals out of 13 proposed, worth a total of $16 billion, according to PetroChina deputy chief economist Li Jianzhong.

PetroChina’s production hit a record 69.6 million tonnes of oil and 8.2 billion cubic metres of natural gas last year — an increase from 2008 of 12% and 22%, respectively.

However, the company has seen production from its major fields such as Daqing and Liaohe fall in recent years after reaching a production plateau a few years ago.

BEIJING, 05 March 2010 (Reuters)

China National Petroleum Company (CNPC) will start work on the Iraqi Halfaya project in the second half of this year, Jiang Jiemin, the chairman of CNPC's subsidiary PetroChina (0857.HK), said on Friday.

Jiang also said it would take a fairly long time to finalize the purchase agreement for a deal to buy 2 million tones of liquefied natural gas per year from Qatar, and that his company planned to put two Chinese LNG terminals into operation next year, in Dalian and Jiangsu.

China National Petroleum Company (CNPC) will start work on the Iraqi Halfaya project in the second half of this year, Jiang Jiemin, the chairman of CNPC's subsidiary PetroChina (0857.HK), said on Friday.

Jiang also said it would take a fairly long time to finalize the purchase agreement for a deal to buy 2 million tones of liquefied natural gas per year from Qatar, and that his company planned to put two Chinese LNG terminals into operation next year, in Dalian and Jiangsu.

(Reporting by Chen Aizhu; Editing by Jonathan Hopfner)

(Reuters)

Total announces that, within the framework of Iraq’s second petroleum bidding round organized by the Iraqi Ministry of Oil on December 12th, 2009, the consortium led by PetroChina Company Ltd signed on January 27, 2010 a 20-year Development and Production Service Contract with Missan Oil Company for the development of the Halfaya oil field. Total E&P Iraq holds an 18.75% interest in the consortium, alongside the operator PetroChina (37.5%) and partners Petronas Carigali Sdn. Bhd. (18.75%) and the State Partner South Oil Company (25%).

The Halfaya oil field is located in the Missan governorate, 35 kilometers southeast of Amara city, and spreads across 30 kilometers long and 10 kilometers wide. The consortium intends to increase the current oil field production from 3,100 barrels of oil per day to 535,000 barrels of oil per day.

“In signing this agreement, Total resumes its activity in a country with important petroleum resources and potential. Total remains committed to accompanying the development of the Iraqi oil industry and is looking at engaging in other cooperation projects. In working with its partners PetroChina and Petronas on the Halfaya oil field, Total will also further strengthen its international partnership with world-class national oil companies”, said Yves-Louis Darricarrère, president Exploration & Production, and Total.

In Iraq, Total started its activities in the 1920s with the discovery of the Kirkuk field. In the 1970s, Total brought the Buzurgan and Abu Ghirab fields on stream. Since then, Total has continuously cooperated with the Iraqi authorities on various technical studies and has provided training to numerous local engineers.