18/09/2013 08:45:00

BP Gets $4.5 Billion Payment for Iraq Field Investment

Related content

Oil Major BP PLC (BP) received a total of $4.5 billion until the end of 2012 for its investments in Iraq's supergiant Rumaila oil field in southern Iraq, a senior Iraqi oil official has said.

BP and partner China National Petroleum Corp., or CNPC, are developing the 17-billion-barrel Rumaila. The field, Iraq's largest, is currently pumping around 1.4 million barrels a day and it is expected to hit 2.1 million barrels a day in 2017.

Abdul Mehdy al-Ameedi, head of the Oil Ministry's petroleum contracts, made no mention of how much was paid to CNPC that won the deal along with BP to develop the field near Basra in 2009.

Baghdad has paid a total of $8.5 billion until the end of 2012 to companies working in Iraq, Mr. Ameedi told the Wall Street Journal on the sidelines of an Iraqi oil meeting in Amman late Tuesday night. Among the paid firms should be U.S. energy giant Exxon Mobil Corp. (XOM) and Italy's largest oil producer, Eni SpA (E), which are developing West Qurna-1 and Zubair oil fields in southern Iraq respectively.

He gave no details of how much precisely each company was paid except for BP.

BP, Exxon Mobil and Eni and their partners have invested billions of dollars to upgrade these three supergiant fields.

"Total costs spent by these firms as well as accumulated remunerations from producing oil from these fields have reached between $16 billion and $17 billion," Mr. Ameedi said.

The three fields are among a number of oil fields Iraq auctioned off to international oil companies in 2009 under service contracts, which stipulate that the firms start to be paid to recover costs once they boost production by 10% above an agreed baseline production.

Write to Hassan Hafidh at hassan.hafidh@WSJ.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

September 18, 2013 03:45 ET (07:45 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
Ingen indlæg

Regulatory news

Form 8.3 - Royal Dutch Shell Plc

31/08/2015 15:11:37
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Medtronic Study Detects Gene Associated with Sudden Cardiac Death

31/08/2015 12:00:30
First-of-its-Kind Discovery Furthers Understanding of Role of Genetics in Sudden Cardiac Death, May Help Identify Patients at Increased Risk ..

Form 8.5 (EPT/RI) - Bioquell plc

28/08/2015 07:57:51
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Wärtsilä wins two more regasification module contracts for LNG vessels
2
MMC NORILSK NICKEL REPORTS FIRST HALF 2015 INTERIM CONSOLIDATED IFRS FINANCIAL RESULTS
3
JCDecaux acquires 70% stake in Eye Catcher Media in Peru
4
Altice NV : Appointment of Michel Combes as both COO of Altice Group and Chairman of the board of Numericable-SFR
5
AB Science: financial report as of 30 June 2015

Related stock quotes

Exxon Mobil Corp 75.24 0.2% Stock price increasing
BP PLC $0.25 354.00 -1.8% Stock price decreasing
BP p.l.c. 33.54 0.8% Stock price increasing
ENI S.p.A. 33.29 3.3% Stock price increasing
ENI . 15.93 -0.1% Stock price decreasing
ENI 14.58 0.0% Stock price unchanged

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2015   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
01 September 2015 08:54:52
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150824.1 - EUROWEB2 - 2015-09-01 09:54:52 - 2015-09-01 08:54:52 - 1000 - Website: OKAY