Basra Oil Company signs contract with Halliburton for two oilfields
Iraq’s Basra Oil Company (BOC) and Halliburton have signed a five-year integrated management contract for the Bin Omar and Sindbad fields in the Basra region, according to a Ministry of Oil Statement
Oil Minister Bassem Mohammed Khudair Al-Abadi said at the signing ceremony that the contract comes in the context of the ministry’s plans and strategy to increase oil and gas production.
The Minister indicated that over the five years, crude oil production in the Ben Omar field will be increased to 150,000 barrels per day, in addition to the production of 300 million standard cubic feet per day of associated gas. He added that production rates in the Sindbad field will be developed to reach 80,000 to 100,000 barrels per day, and the associated gas capacity will be increased from 240 to 260 million standard cubic feet per day, which will provide a flexible supply of gas to the country’s power sector, which currently relies heavily on imported gas.
The Minister affirmed that the Ministry is proceeding with signing contracts with major international companies, especially American companies, and that it will provide support and remove obstacles to “achieve the goals and the public interest”, noting the longstanding involvement of Halliburton in Iraq, where it has been working since 2003.
According to Reuters, Iraq’s Cabinet has approved the Basra Oil Company (BOC), to sign a heads of agreement (HoA) and a non-disclosure agreement (NDA) with a consortium comprising US-based Capital TI and Chevron, alongside Qatar’s UCC, to study strategic oil export pipeline projects. Under the agreements, the consortium will conduct technical and financial feasibility studies for proposed pipeline routes aimed at enhancing Iraq’s crude export infrastructure. The routes under evaluation include the Basra–Haditha–Kirkuk–Ceyhan corridor, which would connect southern Iraq to Turkey’s Mediterranean port of Ceyhan, and the Basra–Haditha–Baniyas route, linking Basra to Syria’s Mediterranean port of Baniyas.
The Cabinet has also authorised Basra Oil Company to sign a consultancy services contract with US engineering firm KBR for the proposed Basra–Haditha oil pipeline project, supporting the technical development of the planned export route.
The proposed pipelines are part of Iraq’s efforts to diversify its crude oil export routes and reduce reliance on the country’s southern export terminals and the Strait of Hormuz.
Iraq, OPEC’s second largest producer, has a sustainable capacity of 4.9mn bpd and is reported to have ambitions to raise production to 7mn bpd. Under economic pressure due to the suspension of oil exports through the Strait of Hormuz during the recent hostilities, and with the oil and gas sector still accounting for 53% of GDP, 88% of revenues and 91% of exports according to the World Bank, Iraq is reported to be lobbying for an increase in its OPEC quota, currently standing at 4.3mn bpd. Major development and rehabilitation of oilfields is underway with the participation of international oil companies; last year ExxonMobil signed an agreement with the Iraq government to develop the supergiant Majnoon oilfield, bp signed an agreement for the redevelopment of oilfields at Kirkuk, and Chevron is looking to take over from Lukoil as operator of the West Qurna Field.
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