Energy

CNPC, BP to increase output at Rumaila oil

(Agencies)
Updated: 2010-07-12 14:14

A worker performs maintenance works at the Rumaila oil field May 24 2010. [Agencies]

China National Petroleum Corp, BP Plc and a local partner may increase production at Rumaila, Iraq's biggest oilfield, by 14 percent by the year-end after assuming full management of the block this month.

Related readings:  CNPC eyes 500 mcm shale gas output by 2015  CNPC, CRC sign strategic partnership accord  CNPC to invest 23b yuan for oilfield in Qinghai  CNPC set to buy 35% stake in Shell's Syria unit

Daily crude production may rise to 1.17 million barrels from more than 1.03 million barrels currently, CNPC said in a statement on its website today.

BP and CNPC signed a 20-year service contract with Iraq in November to increase Rumaila's output to 2.85 million barrels a day, making it the world's second-largest producing oilfield, the London-based producer said on Nov 3. Iraq is seeking to raise oil production to 6 million barrels a day by 2015 to boost its war-ravaged economy.

A venture formed by CNPC, BP and Iraq's state-owned South Oil Co formally took over operations and management of Rumaila on July 1, the Beijing-based company said.

The contract was the only oilfield deal awarded by Iraq in June in the first bidding round since the US-led invasion in 2003.