Iraq approves $843m Weatherford deal

Deal: Iraqi cabinet approves Weatherford deal at Zubair

Reuters

related stories

By News Wires

 19 June 2012 22:52 GMT

Iraq's cabinet approved an $843 million service contract on Tuesday with US oilfield services company Weatherford to build crude production units in the Zubair oilfield.

Italy's Eni, US-based Occidental Petroleum and South Korea's Kogas signed a 20-year deal with Iraq to develop Zubair. They set an eventual output target of 1.2 million barrels per day by 2017, Reuters reported.

Under the contract, Weatherford is to construct six crude production units, each with the capacity to process 50,000 bpd. The duration of the contract is 18 months, the cabinet said in a statement seen by the news wire.

Zubair is currently producing around 254,000 bpd and output is expected to increase by 100,000 bpd by the end of 2012.

Iraq…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index