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BP Says Output at Rumaila Now Allows It to Earn Profit on Field



BP Plc, Europe’s second-biggest oil company, said output at Rumaila has increased enough for the explorer to start making money from the field in southern Iraq.

Production has increased more than 10 percent from the 1.066 million barrels a day initial rate agreed in December 2009, BP said today in a statement in London. BP is the lead contractor in Rumaila Operating Organization, with PetroChina Co. and Iraq’s state-owned South Oil Company as partners.

The production gains allow BP to start recovering their investment under the terms of the agreement, London-based BP spokesman Toby Odone said. Iraq is seeking to lift oil production to 6 million barrels a day by 2015 to bolster its war-torn economy, and Rumaila will become the world’s second- biggest producing oil field if it reaches its output goal of almost 3 million barrels a day.

“This is an exciting milestone in the history of Rumaila,” Salah Mohammed, the field’s joint general manager, said in the statement. “It is a testimony to the efforts of thousands of people who are working on Rumaila -- not just that we have increased production but that we are doing so sustainably and with due regard to safety.”

In the past year, 20 new rigs have moved on to the field and 41 wells have been drilled, BP said. About 10,000 people are working on Rumaila, double the number at the beginning of 2010.

The first phase of a new headquarters and accommodation complex has been completed. Debris left over from the war have been cleared from roads, well sites and other areas of the field, the company said.


Source: http://www.bloomberg.com/news/2011-01-11/bp-says-output-at-rumaila-now-allows-it-to-earn-profit-on-field.html

 


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