Russian oil producer Rosneft reported on February 20, 2017, that it started new drilling operations in Iraq, alongside a Chinese contracting partner.
Rosneft said it started a new exploration well, Salman-1 will be drilled to the measured depth of 4,245 m through Kurra Chine target horizon to be followed by further testing of 5 prospective targets. The company plans to complete drilling in July 2017.
The company is working in the area alongside a Chinese contractor Zhongman Petroleum and Natural Gas Group (ZPEC), after taking over the operations in October.
Rosneft is Russia's largest oil producer. For the 4th quarter, the company said its net production was up 11.8 % year-on-year for a new record high.
As one of the largest oil producers outside of the OPEC, Russia is contributing to efforts to balance a market that last year favored the supply side.
According to statistics, Russian oil producer Lukoil, one of the country's largest in terms of net reserves, posted a 2.8 % decline in production.
State-owned oil producer Bashneft reported a 6.3 % gain from 2015.
Iraq, meanwhile, balked initially at an agreement that went into force in January.
Last month, however, Russia's Lukoil said it hadn't received directives to cut production from its operations in Iraq.
Iraq, one of OPEC's larger contributors, produced around 4.48 million barrels of oil per day on average in January, a survey from S&P Global Platts found.
The country lobbied for an exemption from the OPEC agreement, citing a need to keep the revenue stream flowing as it battled against the Islamic State terrorist group.
Baghdad acquiesced, however, to a ceiling of 4.35 million bpd.
Iraq's production in January was a decline of 150,000 bpd from the previous month.
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