4th Sep 2014 12:24
LONDON (Alliance News) - BP PLC Thursday said it has signed an agreement with the government of Iraq to amend the Rumalia technical service agreement.
The agreement struck by the Rumalia Operating Organisation will see the original target of 2.85 million barrels of oil per day reduced to 2.10 million barrels of oil per day to extend the agreement by five years, meaning the plateau will be maintained for a longer period, BP said.
The Rumalia Operating Organisation, made up of BP, the China National Petroleum Corp (PetroChina), and the Iraqi national oil company South Oil Co, manage the rehabilitation and expansion of the Rumalia oil field, near Basra in south Iraq.
Under the agreement the Rumaila Operating Organisation plans to raise plateau production by about 800,000 barrels of oil per day within the next decade to 2.1 million barrels of oil per day.
"This deal is a great outcome for BP...and the country of Iraq. In maintaining a lower plateau over a longer period it will provide thousands of jobs for Iraqis and plans to bring in over USD1.0 trillion in revenue for the government of Iraq," said a BP spokesman.
BP shares were up 0.80% to 487.65 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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