The events of the last years have been quite complicated for Iraq because of divisions at the political level, reduced revenues from the sale of crude oil low oil pricesand the costs of waging a war against the Islamic State of Iraq and Syria ISISwhich had conquered large swaths of central and western Iraqi territory.
At the end of Octoberthe C. Group, a world-leading events and training producer for the oil, gas and infrastructure industries, will host in Beirut, Lebanon, the Basra Oil Gas and Infrastructure Conference. The conference will be a gathering point for government officials, projects stakeholders, buyers and sellers working in the southern part of Iraq across several industries in three primary business segments: oil and gas, power, and petrochemicals first segmentinfrastructure and construction second segmentand transport and logistics third segment.
The timing, the economic topics, and the geographic target of this conference are quite correct. A few data will clarify this concept. Two types of crude oil are exported: Basra Light Oil, which has an A. The Basra Oil Company B. As Wood Mackenzie, a U. Indeed, this increase is an important achievement, but Iraq is currently still quite far from its plateau production target P. One of the reasons for the delay in increasing oil production in southern Iraq is the very slow development of the Common Seawater Supply Project C.
In practice, to obtain a production increase as high as the one envisaged by the P. The plan is to treat seawater from the Persian Gulf and to transport it via pipeline to the oil fields. But this project is not progressing according to the planned timetable. Currently a scaled-down version 2. With reference to natural gas, at the end ofIraq had total proven natural gas reserves of 3,7 trillion cubic meters of natural gas.
InIraq produced 6. The gas produced is primarily used for power generation, but around two thirds is still flared. Basra Gas Company B. This project is the largest flare-reduction program in the world. The processed associated gas is transformed into dry gas for power generation, liquified petroleum gas L. The company is authorized to export the gas in the form of liquified natural gas, L. Basra Governorate will need to build more gas-fired power plants in order to absorb all the produced associated gas.This paper describes the improvements in drilling operations in the West Qurna-2 field, as evidenced in a reduction of well days and non-productive time, as activity increased from two to six rigs over a fourteen month period.
The West Qurna-2 field, one of the largest oil fields in Iraq and the second largest undeveloped field in the world in terms of its hydrocarbon reserves, was awarded to Russian Lukoil Oil Company operator in Drilling operations were managed under an integrated contract with US oilfield services company, Baker Hughes contractorproviding all services and consumables required for drilling 1, 2.
Challenges included the rapid ramp-up of operations, security, logistics concerns, communications issues, personnel competency, lack of offset data, and downhole problems. Non-productive time was significantly decreased from toeven as well complexity increased with higher inclination wells. In the same time frame the average number of meters drilled per day doubled.
This was achieved not only by engineering and operational improvements, but by implementing project-specific processes, procedures and protocols a formal communications protocol using translators on the locations as well as coaches on the rigs. This paper presents the lessons learned and best practices established to deal with drilling challenges in the West Qurna-2 field such as Tanuma shale instability, loss of circulation and high vibration.
It provides technical and operational recommendations for performing within a large integrated contract that includes logistics and communication difficulties. Tamsin Carlisle Baghdad signs final deals for biggest oilfields: January 31 Lukoil Overseas 'Project at a Glance'. Aref Mohammed Landmines hamper Iraq oil boom, delay investment: November 16 Log in to your subscription Username.
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Publishers Content Coverage Privacy. Administration log in. Sheriff's Encyclopedic Dictionary of Applied Geophysics, fourth edition.West Qurna 2 field is located in the south eastern part of Iraq, approximately 65km north-west of the seaport town of Basra.
The development drilling and construction of the central processing facility for the West Qurna-2 field started in April The license awarded to Lukoil for the operation of the field is valid for 20 to 25 years. The total target production from the field is 1. The initial contract for the development of the field was awarded to Lukoil and Statoil in January Lukoil and Statoil had respective shares of The shares of Statoil were transferred to Lukoil in January LUKOIL will initiate the cost recovery and remuneration payment mechanism upon achieving a production capacity ofbarrels per day.
The project will become self-financed when commercial production of 1. Project management services are being provided by Worley Parsons. West Qurna-2 field was discovered in It covers an area of km2. The estimated recoverable reserves of the field are 14 billion barrels of oil making it the second largest undeveloped field in the world.
The development plan for West Qurna-2 involves the construction of 23 deviated wells. Similar rigs will be used in the future on four other well pads. The rigs are capable of drilling to depths of up to 5,m. The five drilling rigs and three workover rigs are being mounted on skids for fast and efficient rig moves.
Certain wells are being drilled directionally using cluster pad drilling technique to target the mishrif formation. The central processing facility CPF is being constructed in conjunction with well pad facilities, oil gathering lines, water and power supply systems and shift camp, including other infrastructure and auxiliary facilities.
Samsung Engineering is carrying out the engineering, procurement and construction EPC works for five well pads with 67 development wells, five gathering lines, CPF, Euphrates River water intake and water pipeline to the CPF, power supply system and field camp.
The company is also providing several services and facilities for water treatment, distribution and disposal including formation waterfuel gas extraction, instruments, drainage systems, commercial oil storage tanks and pumping facilities, administration buildings, workshops, warehouses, chemical analytical laboratory, fire station and central control room.
The EPC works for a dual fuel fuel gas and diesel oil power plant comprising of three GE MSB generators rated at 42MW each, gas treatment system, power distribution systems and associated utilities will be constructed by Enka Insaat. Enka Insaat will also carry out the EPC works for the water treatment plant, control systems, electrical systems, instrumentation, a gas treatment and compression system, liquid fuel tank storage and transfer system, security systems, GIS switchyards of kV and 33kV, a maintenance shop, and the administration building.
The civil design works including earthworks for well pads, piling and foundation design for rigs and installations, detailed design of intrafield road, upgrading of main axial road and culvert designs for canal crossings are being carried out by Kentz.
The design, supply and driving of high quality precast piles for the project will be carried out by Al-Fayha Group. Oil and Gas Advancement is an information centric knowledge sharing platform focused on the latest news in the B2B oil and gas sector bringing to our audiences B2B updates on upstream, downstream, pipeline and transport categories providing information on the latest projects and developments.
Home News. May 30, Tags: Iraq. Related Posts. Press Releases. Baker Hughes launches AI software to optimise oil and gas production February 20, Sulzer wins contract to supply innovative and compact gas dehydration technology for ExxonMobil January 24, Next Post. Latest Post. Cognite and Aker BP to explore robotics in oil and gas operations February 20, Licensed process technology from Dow and Johnson Matthey selected for new butanol facility in China February 18, Location of the Rumaila—West Qurna field, southern Iraq.
With initial 2P recoverable reserves of Encompassing an area of 2, km2 and extending km from north to south and up to 20 km acrossit is the largest oil and gas field in Iraq and one of the greatest fields in the world. Structurally, this field is an anticline consisting of three domes namedfrom south to north. Most geological structures in southern Iraq were delineated between and by seismic surveys carried out by the Basra Petroleum Co.
BPC put South Rumaila into production in The North Rumaila structure was drilled in June as a northern step-out on the Rumaila axis, with the intention of delineating the northern plunge and exploring the extent of the Middle Cretaceous Mishrif carbonate prospectsas well as investigating the Zubair sandstones below the Main Pay.
However, this reservoir was found at a higher level than expected; the Mishrif contained a productive oil reservoir; and while the Main Pay was productive, the sandstones below were waterlogged. Generalised stratigraphy of the Rumaila—West Qurna field. Additional seismic between andand further deep drilling in and by INOC confirmed the extension of the Yamama and Najmah reservoirs into the West Qurna field. During the years of exploration and delineation from toover ten petroleum oil and gas reservoirsranging in age from Miocene to Jurassic, were discovered in Rumaila—West Qurna, containing proven oil and gas in place reserves of Bbo and 17 Tcfg.
The three main domes of the supergiant field are separated by shallow saddles and the structure is tilted gently northwards. West Qurna and North Rumaila trend north-south, while the southern South Rumaila section trends north-north-west — south-south-east and extends southwards into Kuwait as the Ratqa fieldwhere it is producing heavy oil from the Miocene Lower Fars reservoir.
The flanks of the anticline dip at 1. It is tighter at deeper structural levels, dipping 1. The crest of the Mishrif reservoir at the three main culminations is at 2,m bsl in West Qurna, 2,m in North Rumaila and 2,m in South Rumaila, while the Zubair reservoir is shallowest in South Rumaila at 2,m, as compared to 2,m in North Rumaila and 3,m in West Qurna.
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At this level the saddle between South Rumaila and North Rumaila has up to m of structural relief, but the one between North Rumaila and West Qurna is less pronounced with about 25m relief.
The Yamama reservoir in West Qurna has a crest at 3,m bsl and the oil column is 46 m thick, with a lowest known oil depth of 3,m. The shallowest well penetrations of the Yamama in North Rumaila and South Rumaila domes are 3,m and 3,m respectively. The reservoir is bottom-sealed by the tight limestones and shales of the Sulaiy Formation.
At the top of the Yamama reservoir, the West Qurna Field covers an area of km2. Workers at the Rumaila field. Photo source: Rumaila Operating Organisation. In the North and South Rumaila fields, the Mishrif reservoir is known as the Second Pay and it is regarded as one of the main producing reservoirs in southern Iraq due to its huge reserves.
It started producing in South Rumaila in The net reservoir thickness is 25m. There is not enough drive energy in the water aquifer on the flanks of the field, so water injection is required. The oil has The associated gas contains hydrogen sulphide.
At North Rumaila, Second Pay production started in In this field the two main units are separated by a barrier unit. This reservoir is regarded as continuous with the South Rumaila field, although with improved reservoir characteristicsparticularly towards the north. Oil gravity is This formation comprises at least seven recognised units of alternating limestone, each representing a depositional cycle.
The formation passes downward into organic rich black fissile shale Sulaiy Formation. The Mishrif reservoir is believed to have held 48 Bbo in place, with The Yamama reservoir holds 20 Bb of original oil and 5.
Ashar Creek in Basra during WW1.Subscribe Bronze Sign-up Member Login. It is understood that ExxonMobil and Shellits partner in the West Qurna-1 technical service agreement, had a meeting at the Ministry of Oil in Baghdad today. A second Baghdad-based source, close to the Iraqi government, said ExxonMobil, under pressure from the central government, had requested some time to find a buyer for its stake.
The company hoped to make a profit on its share in West Qurna-1, he said. The US firm has opened negotiations with Asian and Russian firms. The Baghdad source said ExxonMobil may be walking from its West Qurna-1 contract before it is pushed.
West Qurna-2 Field, Basra Province, Iraq
Pressure has been building on the central government to punish ExxonMobil for its investment in Kurdistan, he said. The government knows it could not win a court case if it stripped the US firm of its contract, he said, but could make operations intolerably difficult. ExxonMobil refused to comment when contacted by Petroleum Economist. The Iraqi oil ministry also refused any official comment. It also suggests life is growing more difficult for Western international oil companies in the south.
Earlier this week, the UK government closed down its Basra consulate. But sources in Baghdad said the move showed a retreat from the south, where BP and Shell, among other international oil companies IOCshave taken large stakes in the upstream.
The first phase, West Qurna-1, is operated by an ExxonMobil-Shell joint venture that is contracted to deliver output of 2. It will eventually deliver 1. Byit will rise to 4. Earlier this week, a report in Nefte Compass, a Russia-focused oil-industry newsletter, said that Iraq was considering replacing ExxonMobil at the West Qurna-1 oilfield with Russian firms.West Qurna 2
Lukoil is already operating the West Qurna-2 project. Another agreement over the supply of MiG is also in the works. GazpromNeft, another Russian company with a presence in Iraq, denied reports last week that it had frozen its assets in Kurdistan. Its six blocks in the autonomous region would likely be just the base for further expansion through takeovers of smaller operators in Kurdistan, he said.
The move will also have political ramifications, amid persistent divisions between independence-minded Kurds and the Iraqi central government. The State Department did not respond to questions from Petroleum Economist. Independent Analysis For Energy Leaders. Related Articles. Partners in Mozambique project could seek further cost cuts as global revenue slump looks set to endure.
Kurdish old hands buffeted again. KRG producers face both global and local headwinds to their expansion plans. Mozambique dreams jeopardised by insurgency. The economic viability of LNG projects was undermined by crashing global energy prices and the problems are being compound by IS-linked militia attacks. Firms regard the ambitious climate change targets and renewables investments of their European rivals as largely cosmetic. Depressed oil prices are forcing large-cap producers to roll back spending.
But will they continue to try to shed non-core assets? Guyana chaos a warning sign. As ExxonMobil ramps up production from the Liza project, election buzz has caused murmurings that contracts should be renegotiated. US heavyweights feel the squeeze.Foreign employees of US energy major ExxonMobil will return to work near Iraq's border with Iran Sunday, the oil ministry said, two weeks after being evacuated over tensions between Washington and Tehran.
He said Iraqi authorities, which had slammed the decision to pull out the workers from the West Qurna oil field as political, have taken "the necessary security measures for their return". ExxonMobil pulled out its expatriate employees from the southern oil field after the US ordered non-essential personnel to quit its diplomatic missions in the country on May Washington cited an "imminent" threat from Tehran-linked armed groups in Iraq as tensions fuelled by US President Donald Trump's decision to withdraw from the Iran nuclear deal spiked.
It came 10 days after the Pentagon deployed an aircraft carrier task force and B bombers to the Gulf to fend off an unspecified alleged plot by Tehran to attack US forces or allies.
Oil ministry spokesman Jihad insisted that the absence of the foreign workers had not affected production as the bulk of the workforce is Iraqi. The West Qurna oil field lies close to Iraq's border with Iran. News Home. Follow us. Latest Coronavirus National.
Agence-France Presse 1 June What to read next. Simply Wall St. Yahoo News Australia. Australian Associated Press. Yahoo Sport Australia. Yahoo Lifestyle. Yahoo News Australia Video. Yahoo Finance AU.According to the Plan, the oil production of thousand barrels per day will be reached in and thousand barrels per day is expected in These indicators will be achieved as a result of drilling and commissioning of new production and injection wells, construction and launching of oil treatment, storage and transportation facilities and facilities for gas treatment and power generation.
The experience acquired by the Company in the region, the existing infrastructure and cost compensation within the project development from the current production will ensure maximum efficiency of the project implementation.
The parties noted that due to the agreements reached, LUKOIL will remain one of the largest investors and employers in Iraq in the coming years. The Company has fulfilled all of its contractual obligations to the Ministry of Oil of Iraq. I'm interested in IR. Global business. Corporate Profile. Business Model. Corporate Governance.
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The contract term is 25 years. The first oil at the West Qurna-2 field was produced in Marchand the largest production increment in Iraq has been achieved there by now, amounting tobarrels per day. Press release in PDF. Contact information. You may be interested. Add to favorites. Find similar.