World's Energy

The Ecumene and Beyond

 Gaprom   RusEnergy   World  Pipeliners  Zee Beam 








Friday, February 27, 2009

MPC puts $400m price on Iraq drill deal

02-27-2009 - Upstream OnLine - A new joint venture between Iraq and UK outfit Mesopotamia Petroleum Company (MPC), which aims to boost production within a year, will be worth $400 million, the company said today. MPC and state-run Iraq Drilling Company "intend to invest a total of $400 million to enable (the Iraqi Oil Services Company) to purchase and operate 12 new drilling rigs and for provision of logistical support and working capital," MPC said in a statement. The UK company signed the joint venture deal, which created the Iraqi Oil Service Company, on Thursday as part of Iraq's bid to expand oil production in the short term. The venture, which will be 51% owned by Iraq, would drill 60 new oil wells per year and is expected to increase Iraqi oil output by 120,000 barrels per day within a year, focusing initially on southern oilfields. The deal came as Iraq, which has the world's third largest proven oil reserves, moves ahead with plans to award contracts to major oil firms to develop massive oil and gas fields. But the country, hoping to capitalise on a sharp reduction in violence six years after the US-led invasion to oust Saddam Hussein, wants to modernise its outdated oil industry and boost production before those contracts can come on line. Iraqi oil output has hovered between 2.3 million and 2.4 million bpd in recent months, far short of its potential and below pre-2003 output levels. Iraq, which relies on oil exports for virtually all government revenues, also needs to boost production in order to make up for the collapse in oil prices since their all-time high of around $147 last summer. MPC's chairman, Stephen Remp, is also chairman of Ramco Energy, which has a 32.66% interest in MPC. Another 31.7% is owned by privately held Midmar Energy.

Contact me:  

This page is powered by Blogger. Isn't yours?