On Tuesday December 20, 2011, a consortium that was led by Italy’s ENI SpA and the Iraqi government, landed up in a contract with an unnamed US firm. The contract amounts to $640 million and authorizes the US Company to carry out drilling in 60 oil wells at the southern Zubair oil field.
The contract had the backing of oil ministry and thus Ali Al Dabbagh commented that the council of ministers therefore approved the recommendation. He further informed that the drilling activity will take three complete years and would be carried on turn-key basis.
The Contractors further informed Dow Jones that back in October drilling giants like Schlumberger AG (SLBS.VI) and Weatherford International Ltd. Along with UnaRos, an Italian joint venture of Rosetti Marino and also the privately owned Unaoil, were all competing for a very crucial contract that would help them boost oil production from the Iraqi Zubair oil fields. The production would be triggered tremendously by adding another 450,000 barrels a day. The contra’ct would also incorporate processing units’ construction.
This field is a significant Iraqi oil filed ranking largest as it produces 195,000 barrels a day, before it was handed over to the Eni-led group. Since then the production has increased to 300,000 barrels a day and would expectedly to reach 1.125 million barrels a day by the year 2016 once the plan for its development gets completed.
Moreover considering the news of stable economies both in US and the Europe the oil prices have headed back from the downfall and have reported a 3 percent rise in price recently. The prices of Brent Crude as well as Benchmark crude have both increased in the oil market. Following a better production from the Iraqi oil fields, there is some stability expected in the near future, around the world.
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