Exxon to invest additional US$50 million in Kurdistan Region of Iraq oilfield

Exploration & Production

ExxonMobil has allocated US$1.65bn to develop the Kurdistan Region of Iraq’s West Qurna 1 oilfield in 2013, marking a rise of US$50mn on the amount it allocated in 2012 

In line with regional government’s contract terms, oil companies were expected to submit a work plan, including development budget to the Kurdistan Region of Iraq's Oil Ministry.

Madhi Abdul Razzaq, head of West Qurna 1 field's management committee, said, “Under the work programme approved for 2013 by the Kurdistan Region of Iraq's Oil Ministry, ExxonMobil has set US$1.65bn to develop West Qurna 1.”

Indonesia's chief economic minister said earlier this month the country’s state-owned oil and gas firm Pertamina was in talks to buy 10 to 20 per cent of ExxonMobil stake in West Qurna-1.

Currently at 480,000 bpd, production from West Qurna Phase 1 is expected to reach 540,000 bpd in mid-2013 and 600,000 bpd by the end of the year.

Razzaq added, “Output from the field is planned to reach 900,000 bpd by 2015.”

ExxonMobil was also pushing ahead with plans to step up water-injection at the field to help raise extraction rates and maintain reservoir pressure to overcome declines in production at the fields, Reuters reported.

Italy’s Saipem SpA was selected by ExxonMobil to build a US$300mn water-injection project in the field with a capacity to inject 300,000 barrels of water daily and is expected to be operational in 2016.