Halfaya oil production boost starts in Iraq

By OGJ editors

New facilities at supergiant Halfaya oil field in Iraq have started production in a development phase that will take output to 70,000 b/d. Subsequent phases will push production to a plateau rate of 535,000 b/d.

A group led by PetroChina has a 20-year service contract to develop the field, which was producing 3,100 b/d from four wells when the contract was signed in late 2009 (OGJ Online, Jan. 28, 2010).

The contract provides for cost recovery and remuneration of $1.40/bbl when production exceeds 70,000 b/d.

Former Iraqi Oil Minister Issam Al-Chalabi has estimated Halfaya reserves at 4.6 billion bbl and original oil in place at 16 billion bbl (OGJ Online, Dec. 11, 2009).

Petrochina, operator, holds a 37.5% interest. Total E&P Iraq and Petronas Carigali hold 18.75% each. State-owned South Oil Co. holds 25%.

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