Iraq oil capacity to reach 12 million bpd

BAGHDAD - Iraq’s oil capacity will reach 12 million barrels per day (bpd) from all the contracts it is negotiating with international companies, as well as its own efforts, Oil Minister Hussain al-Shahristani said on Saturday.

Projected plateau production from a second round of bidding for oilfields, held on Friday and Saturday, alone is 4.765 million bpd, he said.

Shahristani also said that Iraq still has “scores” of oilfields, including supergiants and giants, to offer international oil companies. Iraq’ second oilfield auction since the 2003 U.S. invasion marked a “major success,” Iraqi government spokesman Ali al-Dabbagh told Reuters.

Russia’s Lukoil wins big in oil auction

A consortium led by Russia’s private oil giant won the biggest prize of Iraq’s second oil auction this year, nabbing a field initially promised them a decade ago by Saddam Hussein while other companies Saturday showed little interest in offerings outside the secure southern part of the country.

Lukoil and Norway’s Statoil ASA won rights to develop the 12.88 billion barrel West Qurna Phase 2 field in the Basra region, beating out three other consortiums led by France’s Total SA, Malaysia’s state-run Petronas and British giant BP PLC.

Iraq struck deals with foreign energy consortiums on seven oil fields during a two-day auction which concluded Saturday that aims to help the country dramatically boost output.

Three other fields — East Baghdad, Eastern Fields and Middle Furat — did not receive any bids.

Here are details of the deals that were agreed.

WEST QURNA-2

Winning bidder: Lukoil - 85 percent (Russia), StatoilHydro - 15 percent (Norway).

Terms: 1.15 dollars per barrel of oil extracted, with projected output of 1.8 million bpd.

Known reserves: 12.876 billion barrels of oil.

Other bidders: Petronas (Malaysia), Pertamina (Indonesia), PetroVietnam (Vietnam) requested 1.25 dollars per barrel with estimated production of 1.2 million bpd.

· Total (France) asked for 1.72 dollars per barrel with projected output of 1.43 million bpd.

· BP (Britain) and CNPC (China) requested 1.65 dollars per barrel with estimated production of 888,000 bpd.

MAJNOON

Winning bidder: Shell - 60 percent (Britain-Netherlands), Petronas - 40 percent (Malaysia).

Terms: 1.39 dollars per barrel of oil extracted, with projected output of 1.8 million barrels per day (bpd).

Known reserves: 12.58 billion barrels of oil.

Other bidders: Total (France) and CNPC (China) requested 1.75 dollars per barrel, with estimated production at 1.405 million bpd.

HALFAYA

Winning bidder: CNPC - 50 percent (China), Petronas - 25 percent (Malaysia), Total - 25 percent (France).

Terms: 1.40 dollars per barrel of oil extracted, with projected output of 535,000 bpd.

Known reserves: 4.098 billion barrels of oil.

Other bidders: Statoil (Norway) and Lukoil (Russia) requested 1.53 dollars per barrel, with estimated production at 600,000 bpd.

· ONGC (India), TPAO (Turkey), and Oil India (India) asked for 1.76 dollars per barrel with projected output of 550,000 bpd.

· ENI (Italy), Kogas (South Korea), Occidental Petroleum (US), Sonangol (Angola), and CNOOC (China) requested 12.50 dollars per barrel with estimated production of 400,000 bpd.

GARRAF

Winning bidder: Petronas - 60 percent (Malaysia), Japex - 40 percent (Japan).

Terms: 1.49 dollars per barrel of oil extracted, with projected output of 230,000 bpd.

Known reserves: 863 million barrels of oil.

Other bidders: None.