Zubair oil field

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Oil Reserves 4 billion barrels[1]
Oil Production 270,000 bpd (2012)[2]
Discovered 1949
Location South of Basra.
Principal Partners Eni (32.81%)
Secondary Partners Occidental (23.44%), Kogas (18.75%),Maysan Oil Company (25%).

Zubair lies in the south east of Iraq, around 20 kilometres (km) south-west of the city of Basra, and is one of Iraq's largest fields.[3]. The field is though to hold around 4 billion barrels of proven reserves.[4]

Contract Negotiations

Follow Iraq's licensing rounds of 2009, an Eni-led consortium struck a deal with the Iraqi government for the development of the Zubair field. Under the contract, Eni holds a 32.81% stake, Occidental Petroleum 23.44%, Kogas 18.75% and state-owned Maysan Oil Company 25%.[5] According to the contract, the consortium should boost by 10 percent the field's production from its starting level of around 200,000 barrels per day (bpd), and will then earn $2 for each extra barrel produced.[6] The consortium initially askd for $4.80 a barrel produced but later revised its bid to $2 after BP accepted the same amount for the Rumaila field.[7] The consortium also agreed to pay the Iraqi Oil Ministry $300 million as a refundable five-year loan, instead of paying a signature bonus.[8]

Production and Export

When Eni took over the Zubair field it was producing 195,000 bpd. However according to Eni's field's expansion programme, production is expected to reach a plateau level of 1.125 million bpd by 2017.[9] According to Eni CEO Paolo Scaroni in 2012, the consortium to date had invested 4-5 billion euros into the project (roughly US $5.2 - 6.5 billion), but the group expects to invest a total of $18 billion in the project.[10]

References

  1. "Mubadala plans to gain part of Oxy share in Zubair", Upstream Online, 30 October 2009.
  2. "Iraq: the Zubair oilfield", Middle East Confidential, 1 November 2012.
  3. "Zubair", Iraq Energy, retrieved 12 December 2011.
  4. "Iraq's Zubair-Eni deal effective Thursday-official" Reuters, 18 February 2010.
  5. "Eni, Occidental Petroleum and KOGAS sign the technical service contract with Iraq's South Oil Company and Missan Oil Company to redevelop Zubair field" Eni, 22 January 2010
  6. Eni Consortium to Redevelop Zubair Field in Iraq Rigzone, 22 January 2010.
  7. Eni Consortium Finalizes Deal to Develop Iraq Oil Field The Wall Street Journal, 25 January 2010.
  8. "Eni S.p.A., Occidental Petroleum Corporation and Korea Gas Corporation Sign Final Deal For Zubair Oil Field-DJ " Reuters, 22 January 2010.
  9. "Eni awarded the license for the Zubair giant field in Iraq " Eni, 13 October 2009
  10. "Iraq: the Zubair oilfield", Middle East Confidential, 1 November 2012.