BP and PetroChina are developing Iraq's massive Rumalia oil field with plans to raise crude oil production to 2.1 million barrels per day (bpd) by 2020.
BP plc and PetroChina Corporation Limited won the sub-contractor petroleum production license to develop the field in 2009. The consortium structure consists of 38% ownership by BP plc, 37% ownership by PetroChina Corporation and 25% ownership by the State Oil Marketing Organization (SOMO). With estimates suggesting the field contains more than 17 billion barrels of recoverable oil, the consortium will generate billions of dollars in revenue through production increases.
As part of the agreement, the two oil majors share $2 per barrel in remuneration fees in addition to a recoup of all development costs invested in increasing the oil fields production output.
In 2009, Rumalia was producing 1 million bpd of crude oil. By 2017, the field was producing 1.45 million bpd. Production is expected to increase to approximately 1.5 million bpd this year as additional water injection wells are utilized to boost reservoir pressure, designed to bolster output from producing wells.
Source: Seeking Alpha