State-run Iraqi Drilling Co has started working in the Zubair oil field under a $250 million contract to drill 23 new wells in the field, developed by Italy’s ENI, the head of the firm said on Sunday. Director Idrees al-Yassiri said the two-year contract also included overhauling 63 old wells in Zubair.
“We have started executing the contract awarded to us by ENI … The total expected production after completing the project will be more than 250,000 barrels per day from these wells,” Yassiri said during a trip to Zubair oilfield.
ENI, U.S.-based Occidental Petroleum Corp and South Korea’s KOGAS signed a 20-year deal with Iraq to develop Zubair. They set an eventual output target of 1.2 million barrels per day. The Iraqi company has also floated a tender to purchase five drilling towers and has invited foreign companies to bid, Yassiri said, without giving further details. Iraq has signed a series of deals with international oil firms to develop its vast oil reserves in a bid to boost output potential to 12 million bpd from around 2.7 million bpd now.