Iraq signs contracts with foreign companies to drill dozens of oil wells
energy Baghdad Aktham Seif El Din
August 15, 2021
Iraq aims to increase its oil production to 8 million barrels per day (AFP)
Iraq has concluded new contracts with foreign oil companies to drill dozens of wells in the governorates of Kirkuk, Baghdad, Basra, Maysan and Dhi Qar, as part of the Iraqi Ministry of Oil’s plan to raise oil production to 8 million barrels per day at the end of 2027.
The Iraqi government is working to expand the oil export cycle, which is the source The president for the country’s resources, in light of a financial crisis that Iraq has been suffering from, since the drop in global oil prices due to the Corona pandemic, in parallel with the corruption that dominates state institutions and the control of parties and mafias over Iraqi import outlets, including border crossings and ports, and the management of the oil file, among others.
According to the director of the Iraqi Drilling Company affiliated with the Ministry of Oil, Bassem Abdul Karim, "the company is in the process of signing a contract to drill 37 oil wells in the Zubair oil field, for the Italian company Eni, the main operator of the field in Basra Governorate, for a period of more than two years."
He added, in a statement to the official "Al-Sabah" newspaper, that "Eni recently handed over 14 oil wells to the ministry, and started drilling 3 new ones within a previous contract, bringing the total drilling contracts to about 54 wells in the giant field."
Iraq's markets (Zayed Al-Obaidi/AFP)
Corruption and chaos impede investments in Iraq
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He pointed out that "after entering into a competition with major foreign drilling companies to acquire a contract to drill 30 wells in the Rumaila field, west of Basra, the contract was referred to the British oil company BP," stressing "the company's readiness to start drilling operations directly if it is announced as winning."".
He continued, "A contract was signed with the Chinese company Cinoc, the operator of the Bazarkan field in Maysan, to drill 22 wells, in partnership with the Chinese company, Bohan, at a cost of up to 160 million dollars.
He pointed out that "a preliminary agreement was reached with the Chinese company Cinoc to reclaim 150 wells in the Bazarkan field in two phases: the first is 71 wells, and the second will be implemented later," stressing that
"the company is currently implementing a plan to drill 20 wells in the Nasiriyah field, with the participation of the American "Wather Ford" company. Which will enhance the strategy of escalating production and export capacity in the future by up to 60 thousand barrels per day, and that it is estimated that it contains about 4.4 billion barrels of crude.”
For his part, an official in the North Oil Company said that "the contracts come within the ministry's efforts to increase oil production," noting to "The New Arab", that "the ministry will bear the preparation of the technical aspects of the companies, and provide them with other on-site facilities."
The source added, asking not to be named, that:The companies adhered to the special timings for the delivery of the wells, and that the contracts included a penalty clause in the event that the companies were late in completing the wells within the specified period.
Last March, the ministry awarded the US company "Schlumberger" a contract worth $480 million to drill 96 oil wells in the south of the country.