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Iraq has concluded contracts to increase oil production

IRAQ (OBSERVATORY) –┬áThe State Oil Company of Iraq, Basra Oil Co. (BOC) has signed two contracts for $ 118 million to boost production at the Majnoon oil field (Majnun), one of the largest in the country.

Contracts were signed with Anton Oilfield Services Group (China) and Kangan Petro Refining (US).

According to the head of Basra, Isan Abd Al-Jabbar (Ihsan Abd Al-Jabbar), the companies will be engaged in advising on the development of the field. Contracts also imply the involvement of a special computer program for the administration of the field.

Iraqi Oil Minister Jabbar al-Laibi, who was present at the signing of the contracts, confirmed his intention to increase oil production from the field. In early February, the Minister reported that the current production at the field is 240 thousand barrels per day

Al-Laibi stressed that in general, the further development of the field will be handled by the national Basra Oil Company “after BP withdrew from operations,” quotes “Prime”.

In early February, al-Laibi said that Iraq plans to increase production in the Majnoon (Mejnun) field by 1.8 times in three years, to 450,000 barrels per day. In late November, the minister also reported that the American Chevron, the French Total and the Chinese Petrochina can take part in the project to develop the Iraqi field.

In early April, the Iraqi authorities approved a plan to increase oil production capacity in the country to 6.5 million barrels per day (b / s) by 2022. Iraqi Oil Minister Jabbar al-Laibi said in January that the production capacity is about 5 million b / from.

Iraq is the second largest oil producer in OPEC after Saudi Arabia and the third largest oil supplier to China after Russia and Saudi Arabia, reported earlier.

OPEC and a group of producers outside the cartel, including Russia, agreed on November 30 to extend the agreement to reduce production by the end of 2018. The dealers seek to reduce commercial oil reserves in OECD countries to an average of five years and support prices.

According to secondary sources quoted in the OPEC monthly report, Iraq produced 4,425 million b / s in February – 25.5 thousand b / s less than in January. Production is in line with OPEC + arrangements.