Iraq has reached an agreement with British BP, Dutch Shell, and Russian Lukoil to restart stalled investment in oil fields the firms are developing, worth an estimated $3.6b, Reuters reported. Of the total amount, BP agreed to spend $1.8b on the Rumaila field, while Shell and Lukoil agreed to invest $742m and $1.08b, respectively, in the country’s oil fields, according to Iraqi News.
Iraq has yet to reach agreements with Exxon, CNPC, and Petronas on fields that those firms are developing in the south.
As a result of the investments, Iraq’s crude output is expected to increase by 250,000-350,000b/d within the coming year. The country now produces about 4.6mb/d, most of it from the southern region.
The investments were initially planned for projects in early 2016, yet, due to low oil prices, the companies pushed the projects to the second half of the year, after revising the amounts they were willing to invest.