Sonangol Operations in Iraq

=History=

The contracts signed in 2009 marked the beginning of Sonangol's operations in Iraq.

Sonangol won two contract areas during Iraq's second round of licensing in 2009, Najmeh and  Qayara. Both lie in Nineveh province, known as one of Iraq's most troubled areas. "We know that the area where we are going is risky but we are also sure that with the cooperation with the Iraqi authorities we will be able to fulfil our compromise and be able also to produce oil for Najmah and Qayara," said Gaspar Martins, President and CEO of Sonangol.

=Activities and Contracts=

Qayara
At the Qayara field, Sonangol took a 75% stake in the venture. Sonangol said that it would invest $2 billion at the field. In March 2011 Sonangol started work at the Najmah field and was due to start to dig wells in April 2011.

Najmah
Sonangol was the only company to bid for the Najmah contract area in the second licensing round and the Oil Ministry announced on 12 December 2009 that the company had been awarded the contract area.

Security problems
As of March 2012 Sonangol's projects in Iraq remained paralysed under "force majeure" following an attack on facilities in 2011. This set back the company's international plans. Under current conditions it has been suggested that Sonangol would start producing at a rate of 50,000 barrels per day (bpd) from around 2013.

=References=