South Oil: Looks to crank output
South Oil seeks 400,000 bpd boost
Iraq's South Oil said it plans to raise output to 400,000 barrels per day by the end of next year by boosting export facilities and offering up to six new drilling contracts.
South Oil boss Kifah Numan said the company planned to raise production to 3.5 million bpd within three years, partly by drilling up to 400 new wells.
Numan told Reuters: "There is now an accelerated plan drafted by the (Oil) ministry and South Oil Company to go and provide a quick solution for an increase of around 300,000 to 400,000 barrels a day within 2009 and 2010."
The oilfields targeted for the bump do not need extensive infrastructure investment, and include Luhais, Ratawi, South Rumaila and Zubair, he said.
The fields were part of a tender for short-term technical contracts intended to quickly boost production, but the deals were scrapped last year because of delays signing them.
Numan said: "This is the interim period before reaching the next stage of 3.5 million within three years."
Iraq signed contracts worth a total of about $200 million in late December with US-based Weatherford International and companies from Syria and United Arab Emirates to drill 45 new wells.
Numan said: "We are anticipating for 2009 and 2010 to go for much bigger drilling tenders. We anticipate for the overall drilling for the next three years, probably not less than 300 to 400 wells."
Iraq plans to announce two new drilling tenders around the end of this month and another three or four will be announced around 6 February, he said.
The drilling regions will be in southern Basra province.
Last week, Iraq concluded deals with companies to survey the areas around the country's marine Khor al-Amaya and al-Basra oil terminals ahead of plans to add more pipelines from the mainland, more tanker mooring facilities.
The survey is due to start in mid-February.
US-based Foster Wheeler will oversee engineering and surveying, which will also be conducted by an Indian company and Britain's Maritime and Underwater Security Consultants, Numan said.
Iraq threw open its doors to foreign companies to help improve its oil infrastructure last year, but very few have set up an office in the country, citing security concerns.
Numan said their fears were unfounded now that formerly hostile tribes in remote oil producing areas had been placated.