International Oil Companies that include BP, Shell and Lukoil will be reporting a significant reduction in their investments in Iraq. Ariel Flores, General Manager for BP in Rumaila Operating Organisation (ROO), said to the Wall Street Journal, “You’re going through difficult months…you slow down and you make decisions to pause efforts.” Rumaila Oil field has now two rigs drilling for new oil, however, this is 6% down from the previous year. The company has assured it will increase production in more cost effective methods by investing in wells that are already established. Oil output will remain at 1.4 million bpd for the remainder of 2015.
Shell has announced that their Majnoon oil field has produced no more than 200,000 bpd so far and although the expectation was to double output, it has decided to focus on sustaining production at the current levels instead.
Lukoil, however, had earlier in the year announced they planned to invest additional time and money in West Qurna-2 oil field, however, Pavel Zhdanov, Lukoil’s head of Capital Markets and M&A, announced “We’re not ready to proceed to the next phase of development until our negotiations with Iraq lead to some changes in the economics of the contract.”