By OGJ editors
HOUSTON, Jan. 28 -- A group led by PetroChina Co. Ltd. has signed its service contract for development of supergiant Halfaya oil field in Iraq (OGJ, Dec. 21, 2009, Newsletter).
The 20-year contract, with state-owned Missan Oil Co., calls for an increase in production to a plateau of 535,000 b/d from 3,100 b/d at present.
The group will receive a remuneration fee of $1.40/bbl when production exceeds 70,000 b/d and must sustain output at the plateau rate for 13 years. The contract provides for cost recovery.
The Iraqi oil ministry said seven wells drilled in Halfaya field have appraised oil in multiple Tertiary and Cretaceous formations since discovery in 1976. Current production is from four wells completed in Cretaceous Mishrif and Nahr Umr zones.
The field is a northwest-southeast trending anticline about 30 km long and 10 km wide. It’s 35 km southeast of Amara.
PetroChina has a 37.5% interest in the consortium. Total E&P Iraq and Petronas Carigali Sdn. Bhd. hold 18.75% each. State partner South Oil Co. has a 25% interest.