Tuesday, July 20, 2010

BP (NYSE:BP) Drilling Up to 100 New Oil Wells in Iraq's Rumaila Field

Along with partners South Oil Co., the Iraqi state-run oil company, and China National Petroleum, BP (NYSE:BP) will be issuing tenders to drill up to 100 oil wells in the giant Rumaila oil field in Iraq over the next two years.

The consortium have committed to increasing oil production at the field to 2.85 million barrels a day by the end of seven years.

BP holds the largest stake in the field at 38 percent, CNPC is right behind at 37 percent, and South Oil Co. owns the other 25 percent.

The goal in 2011 is to increase oil production by over 100,000 barrels a day, and they hope to do that in the early part of the year.

Revenue is generated from a fixed rate of $2 a barrel for each additional barrel produced at the Rumaila field.

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