Baker Hughes, BP and Schlumberger in Kirkuk talks

A source from inside the Iraqi oil industry has revealed that Baker Hughes, BP, and Schlumberger have all instigated talks with the Iraqi government with regards to more than doubling the amount of oil produced by the Iraq’s northern Kirkuk oilfield.

According to the source, the Iraqi government is hoping to arrange a 10 year contract with one of these companies to raise the Kirkuk field’s output from 280 000 bpd to 600 000 bpd within five years.

Kirkuk’s production has fallen from its previous high of over 900 000 bpd (last seen in the early 2000s) because of poor management and over injection of water.

The field was originally offered in 2009, when Shell made a bid to boost output to 825 000 bpd at a cost of US$ 7.89/bbl. This was turned down by the Iraqi government, which refused to pay more than US$ 2/bbl.

The three companies involved in talks over Kirkuk already have extensive operations within Iraq. Baker Hughes and Schlumberger have projects covering several oilfields in Iraq, whilst BP is in the process of developing Iraq’s largest oilfield at Rumaila (1.3 million bpd).

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13032012/baker_hughes_bp_and_schlumberger_in_kirkuk_talks/