IRAQ/FILE: U.S. oil giant Exxon Mobil and Iraqi Drilling Company (IDC) sign contract to drill oil wells in the west Qurna 1 oilfield in southern Iraq

Record ID: 344182

  • Title: IRAQ/FILE: U.S. oil giant Exxon Mobil and Iraqi Drilling Company (IDC) sign contract to drill oil wells in the west Qurna 1 oilfield in southern Iraq
  • Date: 2nd May 2012
  • Summary: WEST QURNA 1 OILFILED , BASRA PROVINCE, IRAQ (FILE - MARCH 2012) (REUTERS) SIGN READING: "OIL MINISTRY: SOUTH OIL COMPANY (SOC) / OPERATIONS ZUBAIR OPERATIONS CENTRE" OIL STORAGE TANKS AT WEST QURNA 1 OILFIELD OIL FLAME SPURTING/ OIL RIGS AT BACKGROUND OIL STORAGE TANKS
  • Embargoed: 17th May 2012 13:00
  • Keywords:
  • Location: Iraq
  • Country: Iraq
  • Topics: Business,Industry,Politics,Energy
  • Reuters ID: LVAEYPDIG4DCN7M5Q3GAE2BOEP8D
  • Story Text: U.S. oil major Exxon Mobil on Tuesday (May 1) signed a contract with Iraqi Drilling Company in Basra to drill 20 oil wells in one of world's largest undeveloped fields with recoverable oil reserves, the west Qurna 1 oilfield.
    Vice-President of Exxon Mobil, Jon M. Penn signed the contract with IDC head Idress Mohsen in Basra.
    Penn said the contract represented an important step for Exxon.
    "The contract that we are executing with IDC (Iraqi Drilling Company) is for 20 drill wells in west Qurna 1 for a value of 124 million U.S. dollars. It is an important step that we take with IDC today and it is an historic moment for our continuing partnership with SOC (South Oil Company), as well as our partners," Penn told reporters.
    Mohsen said he expected the project to be up and running within the year. "A contract was signed with Exxon Mobil to develop west Qurna 1 oilfiled and to drill 20 wells, including 15 vertical oil wells, while the rest are directional oil wells. The cost is about 100 million U.S. dollars. God willing, the project will be ready in less than a year," Mohsen told reporters.
    In January 2010, ExxonMobil Iraq Limited (EMIL), an affiliate of Exxon Mobil Corporation, signed an agreement with the South Oil Company (SOC) of the Iraq Ministry of Oil to rehabilitate and redevelop the West Qurna I field.
    Exxon, the world's largest publicly traded energy company, has a large and growing portfolio of conventional and unconventional gas assets around the world, many in less challenging environments than Iraq.
    Iraq is expected to be the world's biggest source of new oil supplies over the next few years after signing contracts for big development projects with major oil companies.
    Iraq's oil production had been held back by decades of war and sanctions, but officials say they now expect it to rise quickly.
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