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Oil Firms to Restart Investment, Boost Output

August 11, 2016 in Iraq Oil & Gas News

By John Lee.

Reuters reports that Baghdad has reached agreement with BP, Shell and Lukoil to restart stalled investment in Iraqi oil fields, allowing production to increase by 250,000-350,000 bpd in 2017.

According to documents seen by Reuters, the three firms agreed to spend in the second half of 2016 roughly half the budgets they proposed for 2015:

BP to spend $1.8 billion this year at Rumaila. It had initially planned to spend $3.5 billion last year, which it revised down to $2.5 billion;
Shell to spend $742 million; it proposed $1.5 billion last year; and,
Lukoil to spend $1.08 billion; it proposed $2.1 billion last year.

Iraq has yet to reach agreements with Exxon Mobil, CNPC and Petronas regarding investment in their respective fields.

(Source: Reuters)