Iraq has agreed on a deal with U.S. company Schlumberger Ltd. (NYSE: SLB) to drill 40 wells in the giant Majnoon oil field, the Oil Ministry said on Dec. 19.
Iraqi Oil Minister Thamir Ghadhban said in a statement that the agreement with the oil services firm was aimed at boosting production from Majnoon.
A deal was also signed on Dec. 19 between Basra Oil Co., which manages Majnoon, and Oil Exploration Co., two state-run Iraqi firms, to conduct a seismic survey in Majnoon.
“Carrying out a three-dimensional seismic survey by the Oil Exploration Co. in Majnoon will help to obtain accurate data and boost production at the field,” Ghadhban said.
In June, Royal Dutch Shell (NYSE: RDS.A) exited Majnoon in southern Iraq and handed the field’s operations to Basra Oil.
Crude oil output from Majnoon is more than 240,000 barrels per day (bbl/d), the statement said.
Iraq is the second-largest producer in OPEC after Saudi Arabia and pumps around 4.6 MMbbl/d, below its capacity, in line with global, OPEC-led supply cuts aimed at supporting prices.
The bulk of Iraq’s oil is exported via southern terminals, which account for more than 95% of the country’s state revenue.
Hurricane Energy’s FPSO vessel has been connected to the group’s North Sea Lancaster oil field on March 19, another milestone for the group as it seeks to extract so-called fractured basement oil in Britain.
Exxon Mobil Corp. has resumed seismic exploration for oil and gas off of the coast of Guyana after halting work in December due to a run-in with the Venezuelan navy, a Guyanese government official said on Feb. 26.
U.S. oil producers sought on Jan. 23 to soothe OPEC's worries about losing market share, telling the group that investors in the U.S. firms wanted a reduction in growth and higher payouts.