A company subsidiary, ExxonMobil Iraq Ltd., has signed an agreement with the Iraq Ministry of Oil to redevelop and expand the West Qurna-1 field in southern Iraq.
The consortium members are ExxonMobil as the lead contractor with 60% interest, Oil Exploration Co. (owned by the Iraq government) with 25% interest, and Royal Dutch Shell with 15% interest.
Going forward, ExxonMobil executives say the company will continue discussions with the Iraqi government on other opportunities.
The first phase has about 8.7 billion barrels of reserves.
Phase two, The West Qurna 2 field, is estimated to hold recoverable reserves of nearly 13 billion barrels.
Statoil and Lukoil have also made progress in Southern Iraq. The two companies recently signed a development and production service contract for West Qurna 2.
OAO Lukoil and partner Statoil ASA won rights to develop the second phase of Iraq’ s “ super giant” West Qurna crude deposit, the largest offered to foreign investors in today’ s second round of bidding.
The two companies won rights to develop the field during Iraq's second licensing round the 11th and 12th of December. The companies were bid a production plateau of 1.8 million barrels per day with a remuneration fee of 1.15 dollars per barrel.
The contract, ratified by The Cabinet of Ministers of Iraq is valid for 20 years with an extension option of five years. The parties to the contract are the state Iraq's South Oil Company and the consortium of contractors consisting of the state Iraq's North Oil Company (25%), Lukoil (56.25%), and Statoil (18.75%).
Drilling on West Qurna 2 will start in 2011 and first production is expected at the end of 2012. The target production level is expected to be achieved in 2017, and will be held for 13 years. The field development plan provides for additional seismic acquisition and drilling of more than five hundred wells.