Basrah – Rumaila’s facelift is continuing despite a few hiccups that pushed production down to below the initial production rate (IPR) of 1.065 million barrels per day. That’s the rate at which Rumaila was producing under SOC last year until BP with CNPC signed a service contract to stop the decline and develop the field further to bring it up to 2.85 million b/d within 6 years. However, SOC officials…
Tag: PFTSC
1st Bid Round Model Contract (PFTSC)
Producing Field Technical Service Contract
The Real Winners
In retrospect, and despite what was considered at the time a ridiculously low fee, producing oil fields awarded to international oil companies in the first bid round turned out to be the most lucrative in terms of the service fee they will be paid. That’s excluding the three fields that will be producing less than 200,000 b/d (see table below). Even with the protracted negotiations over amendments to the final producing…
The BP Prize
Once again, the results of Iraq’s first bid round proved that access to Mideast oil comes at a premium to international oil companies. Call it an entry fee for securing a foot in this vast oil hub. The prize is the giant Rumaila fields which despite producing since 1954 for South Rumaila and 1972 for its northern extension, still carry a huge potential but not without challenges. Oil in place…