Rumaila oil field
| Rumaila | |
|---|---|
 |
|
| Country | Iraq |
| Location | Basra, Iraq |
| Offshore/onshore | Onshore |
| Coordinates | 30°09′22″N 47°24′28″E / 30.156112°N 47.407722°ECoordinates: 30°09′22″N 47°24′28″E / 30.156112°N 47.407722°E |
| Operator | Rumaila Operating Organisation |
| Partners | BP (47.6%), CNPC (46.4%), State Oil Marketing Organization (SOMO) (6%) |
| Field history | |
| Discovery | 1953 |
| Production | |
| Current production of oil | 1,351,000 barrels per day (~6.732×107 t/a) |
| Estimated oil in place | 17,000 million barrels (~2.3×109 t) |
| Producing formations | Main Pay, Mishrif, Upper Shale, Bn Umer, 4th Pay |
The Rumaila oil field is a super-giant oil field located in southern Iraq, approximately 20 mi (32 km) from the Kuwaiti border. Discovered in 1953 by the Basrah Petroleum Company (BPC), an associate company of the Iraq Petroleum Company (IPC), the field is estimated to contain 17 billion barrels, which accounts for 12% of Iraq's oil reserves estimated at 143.1 billion barrels. Rumaila is said to be the largest oilfield ever discovered in Iraq and is considered the third largest oil field in the world.
Under Abd al-Karim Qasim, the oilfield was confiscated by the Iraqi government by Public Law No. 80 of 11 December 1961. Since then, this massive oil field has remained under Iraqi control. The assets and rights of IPC were nationalised by Saddam Hussein in 1972, and those of BPC in 1975. The dispute between Iraq and Kuwait over alleged slant-drilling in the field was one of reasons for Iraq's invasion of Kuwait in 1990.
The oil field requires regular investment to manage its reservoir. To maintain steady output, 200,000 barrels a day of lost production has to be replaced every year.
The field is owned by Iraq and subcontracted to BP and CNPC under Iraq Producing Field Technical Service Contract (PFTSC). BP is an operator of the project with 47.6% while CNPC and SOMO hold 46.4% and 6%, respectively. BP and CNPC will recover a renumerated fee of $2 per barrel in profits which will account to 15 to 20% rate of return on investment. Iraqi government and BP agreed to cut the initial bidding price per barrel from $3.99 to $2.00 in June 2009. The US changed its status of forces agreement the same month, starting to depart from Iraq. ExxonMobil which also bid on servicing this field at a price $4.80 walked away due to price cutting terms by the Iraqi Government leaving BP and CNPC as winners of the contract. BP expects the costs will begin to be recovered after the production will be raised by 10% from the current output. The rehabilitation and expansion project will be managed by Rumaila Field Operating Organization (ROO) which will be staffed mainly from PETROFAC employees, a wide range of international oilfield service providers, and smaller number of experts from BP and CNPC.
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