Iraq has signed a final contract with BP and China National Petroleum Corp. (CNPC) to triple output at the giant Rumaila oil field, the first new megadeal since the USled invasion in 2003 (IOD Nov.3,p1). The pact requires BP and CNPC to boost Rumaila's flows as quickly as they can by 10% - or roughly 100,000 b/d - from initial rates of just over 1 million b/d. They are expected to spend some $300 million to carry out work during this early stage. The duo will then have to hit their 2.85 million b/d plateau production target and sustain that level for at least seven of the contract's 20 years. If the ambitious goal is not met, the companies' $2/bbl remuneration fee will be reduced.
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