Rumaila oil field: Difference between revisions
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| relief = yes |
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| operator = [[Rumaila Operating |
| operator = [[Rumaila Operating Organisation]] |
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| operators = |
| operators = |
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| partners = |
| partners = <nowiki>Technical Service Partners: Basra Energy Company Ltd (BECL) comprising BP and CNPC, </nowiki><br /><nowiki>State Oil Marketing Organization (SOMO)</nowiki> |
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| owner = [[ |
| owner = [[Basra Oil Company]] |
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| discovery = 1953 |
| discovery = 1953 |
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| oil_production_bbl/d = |
| oil_production_bbl/d = 14210000 |
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| production_year_oil = 2022 |
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| formations = Main Pay, Mishrif, Upper Shale, Bn Umer, 4th Pay |
| formations = Main Pay, Mishrif, Upper Shale, Bn Umer, 4th Pay |
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The '''Rumaila oil field''' is a super-giant [[oil field]]<ref>{{cite book|last=Beydoun|first=Ziad|title=The Middle East: Regional Geology and Petroleum Resources|year=1988|publisher=Scientific Press Ltd|location=Beaconsfield|isbn=090136021X|page=179}}</ref> located in southern [[Iraq]], approximately |
The '''Rumaila oil field''' is a super-giant [[oil field]]<ref>{{cite book|last=Beydoun|first=Ziad|title=The Middle East: Regional Geology and Petroleum Resources|year=1988|publisher=Scientific Press Ltd|location=Beaconsfield|isbn=090136021X|page=179}}</ref> located in southern [[Iraq]], approximately 50km to the south west of Basra City.<ref name=mil>{{cite news | url=http://www.army.mil/-news/2010/06/12/40744-delegation-sees-iraq-oil-field-up-close/ | title= Delegation sees Iraq oil field up close | publisher= US Army | author = Master Sgt. David Bennett | date=2010-06-12 | accessdate=2010-06-24}}</ref> Discovered in 1953 by the Basrah Petroleum Company (BPC), an associate company of the [[Iraq Petroleum Company#Delayed production start|Iraq Petroleum Company]] (IPC),<ref name=":0">{{cite book|title=Iraq Petroleum Handbook|year=1948|publisher=IPC|location=London|page=141|url=http://almashriq.hiof.no/lebanon/300/380/388/ipc/ipc-hb-1948/index.html}}</ref><ref>{{cite book|last=Vassiliou|first=Marius |author-link= Marius Vassiliou|title=Historical Dictionary of the Petroleum Industry|year=2009|publisher=Scarecrow Press, Inc|location=Plymouth, UK|isbn=9780810859937|page=272|url=https://books.google.com/books?id=vArc08DO9ykC&q=ipc+rumaila+middle+east&pg=PA272}}</ref><ref name=":1">{{cite book|last=Nairn, Alsharan|first=A.E.M., A.S.|title=Sedimentary Basins and Petroleum Geology of the Middle East|year=2003|edition=2nd|publisher=Elsevier|location=Amsterdam|isbn=0444824650|page=471|url=https://books.google.com/books?id=0Ug0GdmopWMC&q=rumaila&pg=PA471}}</ref> the field is estimated to contain 17 billion barrels, which accounts for 12% of Iraq's oil reserves, estimated at 143 billion barrels.<ref name="GT-DEX-2012-83">{{cite web|title=Iraq – Rumaila Oil Field (HVO IRQ-10) |url=http://www.ukti.gov.uk/export/countries/asiapacific/middleeast/iraq/businessopportunity/345360.html |work=ukti.gov.uk |accessdate=22 August 2012 |url-status=dead |archive-url=https://web.archive.org/web/20130521222321/http://www.ukti.gov.uk/export/countries/asiapacific/middleeast/iraq/businessopportunity/345360.html |archive-date=21 May 2013 }}</ref><ref name="GT-DEX-2010-65">{{cite web|title=Iraq increases oil reserves by 24% |
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|url=https://www.bbc.co.uk/news/business-11468209|publisher=BBC|date=4 October 2010|accessdate=22 August 2012}}</ref><ref name="GT-DEX-2010-66">{{cite web|title=Iraq Lifts Oil Reserves Estimate to 143 Billion Barrels, Overtakes Iran|url=https://www.bloomberg.com/news/print/2010-10-04/iraq-lifts-oil-reserves-estimate-overtakes-iran-update1-.html|publisher=Bloomberg|date=4 October 2010|accessdate=22 August 2012}}</ref> Rumaila is said to be the largest oilfield ever discovered in Iraq<ref>{{cite web|title=IBBC |
|url=https://www.bbc.co.uk/news/business-11468209|publisher=BBC|date=4 October 2010|accessdate=22 August 2012}}</ref><ref name="GT-DEX-2010-66">{{cite web|title=Iraq Lifts Oil Reserves Estimate to 143 Billion Barrels, Overtakes Iran|url=https://www.bloomberg.com/news/print/2010-10-04/iraq-lifts-oil-reserves-estimate-overtakes-iran-update1-.html|publisher=Bloomberg|date=4 October 2010|accessdate=22 August 2012}}</ref> Rumaila is said to be the largest oilfield ever discovered in Iraq<ref>{{cite web|title=IBBC Members Profile – BP|url=http://www.webuildiraq.org/members-profiles/bp-iraq/|website=We Build Iraq|accessdate=22 September 2016}}</ref> and one of the three largest oilfields in the world.<ref name=Forbes>{{cite news|url=https://www.forbes.com/2010/01/21/biggest-oil-fields-business-energy-oil-fields.html |title=The World's Biggest Oil Reserves. Chances are your energy needs are going to flow from one of these 10 fields in the future |work=[[Forbes]] |author=Christopher Helman |date=2010-01-21 |accessdate=2010-06-24 |archive-url=https://archive.today/20130124020925/http://www.forbes.com/2010/01/21/biggest-oil-fields-business-energy-oil-fields.html |archive-date=2013-01-24 |url-status=dead }}</ref> |
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Under [[ |
Under [[Abdul-Karim Qasim]], the oilfield was nationalised by the Iraqi government by Public Law No. 80 on 11 December 1961.<ref>{{cite book|last=Wolfe-Hunnicut|first=Brandon Roy|title=The End of the Concessionary Regime: Oil and American Power in Iraq, 1958–1972|year=2011|publisher=Stanford University|location=Ph.D dissertation|page=70|url=https://books.google.com/books?id=zCDrHfPN9J4C&q=80&pg=PA78}}</ref> Since then, this massive oil field has remained under Iraqi control. The assets and rights of IPC were nationalized by [[Saddam Hussein]] in 1972, and those of BPC in 1975.<ref>Shwadran, Benjamin "[https://books.google.com/books?id=FqEOGhs_mzoC&dq=1973+basra+petroleum+company+nationalisation&pg=PA70 Middle East Oil: Issues and Problems]", ''Schenkman Publishing'', 1977.</ref> The dispute between Iraq and Kuwait over alleged [[slant-drilling]] in the field was one of the reasons for [[Gulf War|Iraq's invasion of Kuwait in 1990]].<ref name="GT-DEX-1990-01">Thomas C. Hayes, [https://www.nytimes.com/1990/09/03/world/confrontation-in-the-gulf-the-oilfield-lying-below-the-iraq-kuwait-dispute.html?pagewanted=all&src=pm Confrontation in the Gulf's ; The Oilfield Lying Below the Iraq-Kuwait Dispute], ''The New York Times'', September 3, 1990</ref><ref name="GT-DEX-1990-02">{{cite book|last=J. Murdico|first=Suzanne|title=The Gulf War : War and Conflict in the Middle East|date= 2003|publisher=The Rosen Publishing Group |isbn=9780823945511|pages=13, 68|url=https://books.google.com/books?id=LhvOVjZuBjgC&pg=PA13}}</ref> |
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After decades of under investment, by the early 2000s, the field was suffering not only from the natural base decline of its reservoirs, but also from ageing infrastructure and equipment, compromising production capacity, environmental protection and safety. |
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The oil field requires regular investment to manage its reservoir. To maintain steady output, 200,000 barrels a day of lost production has to be replaced every year.<ref>{{cite news|last1=Kent|first1=Sarah|last2=Williams|first2=Selina|title=Oil Companies Hunker Down in Iraq|url=https://www.wsj.com/articles/oil-companies-hunker-down-in-iraq-1474475115|url-access=subscription |accessdate=22 September 2016|work=The Wall Street Journal|agency=Dow Jones|date=Sep 21, 2016}}</ref>{{clarify|date=February 2019}} |
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Following the BBC story, the Rumaila Operating Organisation (ROO) has been reducing gas flaring from its operated facilities at Rumaila. This reduced by a further 20% during 2022 – contributing to a reduction of more than 65% over the past seven years.<ref>{{Cite web |date=16 February 2023 |title=bp responds to BBC story on Rumaila oilfield. |url=https://www.bp.com/en/global/corporate/news-and-insights/bp-responds-to-bbc-story-on-rumaila-oilfield.html#accordion_feb-23 |access-date= |website=bp}}</ref> |
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==Ownership== |
==Ownership== |
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The field is owned by Iraq (Basra Oil Company). Following bidding rounds in the first decade of the 2000s, a Technical Service Contract was signed between BOC and BP, PetroChina and the [[State Organization for Marketing of Oil|State Oil Marketing Organization]] (SOMO) in 2009. This detailed the establishment of ROO as the operator of the oilfield and led to the introduction of new technologies and infrastructure, training and equipment for staff, and an extensive drilling and expansion programme. |
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The field is owned by Iraq and subcontracted to [[BP]] and [[CNPC]] under ''Iraq Producing Field Technical Service Contract (PFTSC)''.<ref name=mil/><ref name=Rumaila>{{cite web|url=http://www.bp.com/genericarticle.do?categoryId=98&contentId=7059849 |title=BP in Rumaila |author=Michael C Daly |date=2010-02-16 |accessdate=2010-06-24 |url-status=dead |archive-url=https://web.archive.org/web/20100706075526/http://www.bp.com/genericarticle.do?categoryId=98&contentId=7059849 |archive-date=2010-07-06 }}</ref> BP is an operator of the project with 47.6% while CNPC and [[SOMO]] hold 46.4% and 6%, respectively.<ref name=press>{{Cite press release|title=BP and CNPC to Develop Iraq's Super-Giant Rumaila Field |publisher=[[BP]] |date=2009-11-03 |url=http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7057650 |accessdate=2010-06-24 |url-status=dead |archive-url=https://web.archive.org/web/20130419132000/http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7057650 |archive-date=2013-04-19 }}</ref> BP and CNPC will recover a renumerated fee of $2 per barrel in profits which will account to 15 to 20% rate of return on investment. Iraqi government and BP agreed to cut the initial bidding price per barrel from $3.99 to $2.00 in June 2009.{{citation needed|date=November 2015}} The US changed its status of forces agreement the same month, starting to depart from Iraq. [[ExxonMobil]] which also bid on servicing this field at a price $4.80 walked away due to price cutting terms by the Iraqi Government leaving BP and CNPC as winners of the contract.<ref>{{cite news |url=http://www.businessweek.com/globalbiz/content/jun2009/gb20090630_369168.htm |title=Iraq's Oil-Field Auction Falls Short |publisher=[[Bloomberg Businessweek]] |author=Stanley Reed |date=2010-06-30 |accessdate=2010-06-24 |url-status=dead |archive-url=https://web.archive.org/web/20100117162040/http://www.businessweek.com/globalbiz/content/jun2009/gb20090630_369168.htm |archive-date=2010-01-17 }}</ref><ref>{{cite news | url=http://www.businessinsider.com/investing-in-iraq-oil-fields-2010-4 | title= The $40 Billion Opportunity In Iraq | publisher= Business Insider | date=2010-04-26 | accessdate=2010-06-24}}</ref><ref>{{cite news | url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aM0oM8QAzEDE | title= BP Says Return on Iraq's Rumaila to Compare With World Fields | publisher= [[Bloomberg L.P.|Bloomberg]] | last1= DiPaola |first1= Anthony |last2=Gismatullin |first2= Eduard | date=2009-07-28 | accessdate=2010-06-24}}</ref> BP expects the costs will begin to be recovered after the production will be raised by 10% from the current output. The rehabilitation and expansion project will be managed by [[Rumaila Field Operating Organization]] (ROO) which will be staffed mainly from PETROFAC employees, a wide range of international oilfield service providers, and smaller number of experts from BP and CNPC.<ref name=press/><ref>{{cite news | url=https://sputniknews.com/20091103/156702611.html | title= BP, CNPC sign contract to develop Iraq's Rumaila field | publisher= [[RIA Novosti]] | date=2009-11-03 | accessdate=2010-06-24}}</ref> |
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In June 2022, Basra Energy Company Ltd (BECL), a company wholly owned by PetroChina and bp which manages the companies’ interests at the Rumaila oilfield, assumed the lead contractor role from bp, under the existing Technical Services Contract. BECL was established to enable continued and optimized investment in the field, including enhanced access to external financing. ROO remained as the operator. The Technical Services Contract was extended in 2014 and now runs until 2034. |
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An estimated $15 billion will be spent on enhancing the operations at Rumaila over the next 20 years.<ref name=Forbes/>{{clarify|date=April 2021}} |
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==Production== |
==Production== |
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Transformation of the field began in 2010 and since then production has risen by 35%. During 2022, the field's reported production averaged {{convert|1421000|oilbbl/d|m3/d}} making up around 30% of Iraq's oil production of {{convert|4.6|Moilbbl/d|m3/d}}.<ref>{{cite news | url=https://www.reuters.com/article/idUSL820863520091008 | title= Iraq signs deal with BP, CNPC for Rumaila field | publisher= [[Reuters]] | author = Ahmed Rasheed | date=2009-10-09 | accessdate=2010-06-24}}</ref><ref>{{cite web|title=Top Ten Highest Producing Oil Fields|url=http://oilpatchasia.com/2013/10/top-ten-highest-producing-oil-fields/|publisher=Oil Patch Asia|accessdate=7 January 2014|url-status=dead|archive-url=https://web.archive.org/web/20140102203244/http://oilpatchasia.com/2013/10/top-ten-highest-producing-oil-fields/|archive-date=2 January 2014}}</ref> As of 2019, about 550 production wells were operating at Rumaila.<ref>{{Cite web |title=Rumaila Oil Field - the biggest producing field in Iraq |url=https://www.nsenergybusiness.com/projects/rumaila-oil-field/ |access-date=2024-04-25 |language=en-US}}</ref> |
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The field produced {{convert|1500000|oilbbl/d|m3/d}}in 2019.<ref>{{cite news | url=https://www.reuters.com/article/iraq-oil-rumaila-idUKL5N22B4U8 | title=Production at Iraq's Rumaila oilfield reaches 1.5 MLN BPD - BP | newspaper=Reuters | date=29 April 2019 }}</ref> |
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'''Production Facilities''' |
'''Production Facilities''' |
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The field is operated by [[Rumaila Operating Organization|Rumaila Operating Organisation]]. Facilities include a headquarters, waste management centre, supply base and training academy. There are also seven operational cluster pump stations and with 14 degassing stations - seven in the North field and seven in the South field. These degassing stations provide 3-phase [[Oil separation|separation]] (oil, water, and natural gas). Crude oil is sent by pipeline to local refineries or ports in [[Basra]] for export. Natural gas is provided to the [[Basrah Gas Company]], as well as being used in the recently built Rumaila Power Plant which provides electricity to various oilfield facilities. Water is disposed into disposal wells. Degassing station names: |
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* '''North Rumaila:''' DS1, DS2, DS3, DS4, DS5, NIDS, SIDS |
* '''North Rumaila:''' DS1, DS2, DS3, DS4, DS5, NIDS, SIDS |
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* '''South Rumaila:''' |
* '''South Rumaila:''' Markazia (Rumaila), Janubia, Shamiya, Qurainat, Mishrif Shamiya, Mishrif Qurainat, Ratqa |
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;Drilling contracts |
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In early 2010, BP subcontracted deals valued at around $500 million to [[Weatherford International]], consortium of [[Schlumberger]] and Iraqi Drilling Co, and Daqing Oilfield Company Limited from China to drill 49 new wells at Rumaila. Weatherford is going to drill seven wells while partnership of Schlumberger and Iraqi Drilling Co, and Daqing Oil Field Co will drill 21 wells each.<ref>{{cite news | url=http://www.rigzone.com/news/article.asp?a_id=90253 | title= BP Awards 3 Drilling Deals for Iraq's Rumaila Field | publisher= Rigzone | author = Hassan Hafidh | date=2010-03-30 | accessdate=2010-06-24}}</ref> |
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In February 2011, Conceptual Design, Front End Engineering Design (FEED), Minimum Work Obligations and Integrated Project Management Team (IPMT) services contract was awarded to [http://www.worleyparsons.com/InvestorRelations/ASX/Pages/ContractawardtoboostproductionfromtheRumailaOilField,Iraq.aspx WorleyParsons] |
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==Reserves== |
==Reserves== |
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Rumaila reportedly holds an estimated |
Rumaila reportedly holds an estimated 17 billion barrels of oil; which accounts for 12% of Iraq's oil reserves, estimated at 143.1 billion barrels.<ref name=GT-DEX-2012-83/><ref name=GT-DEX-2010-65/><ref name=GT-DEX-2010-66/> The oil sits approximately {{convert|2400|m|ft|abbr=on}} below the surface which is considered an easy target for production.<ref name=mil/> At current production rate of {{convert|1421000|oilbbl/d|m3/d}}, the [[reserves-to-production ratio]] is just under 35 years. |
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== Importance == |
== Importance == |
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[[File:US Navy 030328-M-0000X-005 Kuwaiti firefighters fight to secure a burning oil well in the Rumaila oilfields.jpg|thumb|Firefighters from [[Kuwait]] attempting to extinguish a burning oil well at Rumaila in March 2003]] |
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Rumaila oil field was critical in the 1990 [[Gulf War]]. Iraq, after accusing Kuwait of allegedly side-drilling under Iraqi soil, launched an [[Gulf War#Invasion of Kuwait|attack on Kuwait]] on 2 August 1990.<ref name=GT-DEX-1990-01/><ref name=GT-DEX-1990-02/> In addition, Kuwait had been producing quantities of oil, which were above treaty limits established by OPEC.<ref>{{cite web|author=Thomas C. Hayes|title=CONFRONTATION IN THE GULF; The Oilfield Lying Below the Iraq-Kuwait Dispute|url=https://www.nytimes.com/1990/09/03/world/confrontation-in-the-gulf-the-oilfield-lying-below-the-iraq-kuwait-dispute.html?pagewanted=2&src=pm|work=The New York Times|date=September 3, 1990}}</ref> |
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In fact, before the Iraqi occupation of Kuwait in 1990, Kuwait |
Rumaila oil field was critical in the 1990 [[Gulf War]]. Iraq, after accusing Kuwait of allegedly side-drilling under Iraqi soil, launched an [[Gulf War#Invasion of Kuwait|attack on Kuwait]] on 2 August 1990.<ref name="GT-DEX-1990-01" /><ref name="GT-DEX-1990-02" /> In addition, Kuwait had been producing quantities of oil, which were above treaty limits established by OPEC.<ref>{{cite web|author=Thomas C. Hayes|title=CONFRONTATION IN THE GULF; The Oilfield Lying Below the Iraq-Kuwait Dispute|url=https://www.nytimes.com/1990/09/03/world/confrontation-in-the-gulf-the-oilfield-lying-below-the-iraq-kuwait-dispute.html?pagewanted=2&src=pm|work=The New York Times|date=September 3, 1990}}</ref> In fact, before the Iraqi occupation of Kuwait in 1990, Kuwait had drilled only 8 vertical wells in its part of the Rumaila field and the production was limited due to different technical problems. The issue for Kuwait was territorial more than oil. Kuwait never drilled deviated wells that crossed the Iraqi borders. After the liberation of Kuwait in 1991, the United Nation border demarcation committee went back to the historical data and shifted the Kuwaiti border toward the north which meant that Iraq was producing from Kuwaiti territory. |
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During the [[ |
During the [[2003 invasion of Iraq]], the [[Iraqi Ground Forces]] laid an 18 km long defensive minefield across it, which contained an estimated 100,000 mines.<ref>{{cite web |url =http://www.ft.com/intl/cms/s/2/ed7cd2d4-45e7-11e2-b780-00144feabdc0.html#axzz2HQPlVS6e |title =Iraq – back in the flow |last =Chazan |first =Guy |date =December 16, 2012 |publisher =Financial Times |accessdate =7 January 2013}}</ref> Iraqi forces also set fire to parts of the oil field as a defensive maneuver, though these fires were later extinguished by [[Multi-National Force – Iraq|Coalition]] forces.<ref>http://www.iadc.org/dcpi/dc-novdec03/Nov3-Boots.pdf {{Bare URL PDF|date=March 2022}}</ref><ref>{{Cite web|url=http://edition.cnn.com/2003/WORLD/meast/03/21/sprj.irq.oil.wells/index.html|title=CNN.com - UK: Iraq torches seven oil wells - Mar. 21, 2003|website=edition.cnn.com}}</ref><ref>{{Cite web|url=http://kockw.com/sites/EN/Pages/Profile/History/OilFires.aspx|archive-url=https://web.archive.org/web/20150519003256/http://kockw.com/sites/EN/Pages/Profile/History/OilFires.aspx|url-status=dead|archive-date=2015-05-19|title=Kuwait Oil Company|date=May 19, 2015}}</ref> |
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== Camps in North Rumaila Oil Field== |
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| ⚫ | Gas, when burned openly, can produce pollutants that are linked to cancer. Iraqi law prohibits gas-burning less than 10 km from people's homes, but the [[BBC]] found in 2022 that gas was being burned as close as 350 meters from people's homes. A leaked report from the [[Ministry of Health (Iraq)|Iraqi Ministry of Health]] blamed air pollution for a 20% rise in cancer in [[Basra]] between 2015 and 2018;<ref name="BBC1">{{Cite news |date=2022-09-30 |title=BP in oil field where 'cancer is rife' |language=en-GB |work=BBC News |url=https://www.bbc.com/news/science-environment-63083634 |access-date=2023-06-18}}</ref> however, the Ministry of Health also prohibited its employees from speaking about the health damage.<ref name=BBC1/> Iraqi Environment Minister Jassem al-Falahi later admitted that "pollution from oil production is the main reason for increases in local cancer rates." None of the affected locals received compensation.<ref name="BBC2">{{Cite news |date=2022-10-17 |title=Iraqi minister admits gas flaring cancer link |language=en-GB |work=BBC News |url=https://www.bbc.com/news/science-environment-63284896 |access-date=2023-06-18}}</ref> |
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There are many oil field companies camps for their staff in North rumaila oil field. |
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*[[Weatherford City North Rumaila]]<ref>{{Cite web|url=https://news.news.trust.org/item/20160217180852-yifog|title=File photo of the Weatherford booth during the Basra International trade fair for oil and gas in Basra|first=Thomson Reuters|last=Foundation|website=news.news.trust.org}}</ref> |
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*[[British Petroleum camp in North Rumaila]]<ref>{{Cite web|url=http://www.theguardian.com/world/2010/oct/11/basra-iraq-oil-city-transformed|title=Basra in southern Iraq has been transformed - thanks to oil|date=October 11, 2010|website=the Guardian}}</ref> |
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The Rumaila Operating Organisation has reduced gas flaring at its operated facilities by more than 65% since 2016.<ref>{{Cite web |date=16 February 2023 |title=bp responds to BBC story on Rumaila oilfield |url=https://www.bp.com/en/global/corporate/news-and-insights/bp-responds-to-bbc-story-on-rumaila-oilfield.html#accordion_feb-23 |website=bp}}</ref> |
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| ⚫ | Gas, |
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==See also== |
==See also== |
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[[Category:Territorial disputes of Kuwait]] |
[[Category:Territorial disputes of Kuwait]] |
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[[Category:Territorial disputes of Iraq]] |
[[Category:Territorial disputes of Iraq]] |
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[[Category:Iraqi invasion of Kuwait]] |
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[[Category:Basra Governorate]] |
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Latest revision as of 11:28, 9 November 2024
| Rumaila | |
|---|---|
  Location of Rumaila | |
| Country | Iraq |
| Location | Basra, Iraq |
| Offshore/onshore | Onshore |
| Coordinates | 30°09′22″N 47°24′28″E / 30.156112°N 47.407722°E |
| Operator | Rumaila Operating Organisation |
| Owner | Basra Oil Company |
| Partners | Technical Service Partners: Basra Energy Company Ltd (BECL) comprising BP and CNPC, State Oil Marketing Organization (SOMO) |
| Field history | |
| Discovery | 1953 |
| Production | |
| Current production of oil | 14,210,000 barrels per day (~7.081×108 t/a) |
| Year of current production of oil | 2022 |
| Estimated oil in place | 17,000 million barrels (~2.3×109 t) |
| Producing formations | Main Pay, Mishrif, Upper Shale, Bn Umer, 4th Pay |
The Rumaila oil field is a super-giant oil field[1] located in southern Iraq, approximately 50km to the south west of Basra City.[2] Discovered in 1953 by the Basrah Petroleum Company (BPC), an associate company of the Iraq Petroleum Company (IPC),[3][4][5] the field is estimated to contain 17 billion barrels, which accounts for 12% of Iraq's oil reserves, estimated at 143 billion barrels.[6][7][8] Rumaila is said to be the largest oilfield ever discovered in Iraq[9] and one of the three largest oilfields in the world.[10]
Under Abdul-Karim Qasim, the oilfield was nationalised by the Iraqi government by Public Law No. 80 on 11 December 1961.[11] Since then, this massive oil field has remained under Iraqi control. The assets and rights of IPC were nationalized by Saddam Hussein in 1972, and those of BPC in 1975.[12] The dispute between Iraq and Kuwait over alleged slant-drilling in the field was one of the reasons for Iraq's invasion of Kuwait in 1990.[13][14]
After decades of under investment, by the early 2000s, the field was suffering not only from the natural base decline of its reservoirs, but also from ageing infrastructure and equipment, compromising production capacity, environmental protection and safety.
The town of North Rumaila is called "the cemetery" by the locals. A local environmental scientist told the BBC in 2022 that cancer in the area was so rife it was "like the flu".[15]
Following the BBC story, the Rumaila Operating Organisation (ROO) has been reducing gas flaring from its operated facilities at Rumaila. This reduced by a further 20% during 2022 – contributing to a reduction of more than 65% over the past seven years.[16]
Ownership
[edit]The field is owned by Iraq (Basra Oil Company). Following bidding rounds in the first decade of the 2000s, a Technical Service Contract was signed between BOC and BP, PetroChina and the State Oil Marketing Organization (SOMO) in 2009. This detailed the establishment of ROO as the operator of the oilfield and led to the introduction of new technologies and infrastructure, training and equipment for staff, and an extensive drilling and expansion programme.
In June 2022, Basra Energy Company Ltd (BECL), a company wholly owned by PetroChina and bp which manages the companies’ interests at the Rumaila oilfield, assumed the lead contractor role from bp, under the existing Technical Services Contract. BECL was established to enable continued and optimized investment in the field, including enhanced access to external financing. ROO remained as the operator. The Technical Services Contract was extended in 2014 and now runs until 2034.
Production
[edit]Transformation of the field began in 2010 and since then production has risen by 35%. During 2022, the field's reported production averaged 1,421,000 barrels per day (225,900 m3/d) making up around 30% of Iraq's oil production of 4.6 million barrels per day (730,000 m3/d).[17][18] As of 2019, about 550 production wells were operating at Rumaila.[19]
Production Facilities
The field is operated by Rumaila Operating Organisation. Facilities include a headquarters, waste management centre, supply base and training academy. There are also seven operational cluster pump stations and with 14 degassing stations - seven in the North field and seven in the South field. These degassing stations provide 3-phase separation (oil, water, and natural gas). Crude oil is sent by pipeline to local refineries or ports in Basra for export. Natural gas is provided to the Basrah Gas Company, as well as being used in the recently built Rumaila Power Plant which provides electricity to various oilfield facilities. Water is disposed into disposal wells. Degassing station names:
- North Rumaila: DS1, DS2, DS3, DS4, DS5, NIDS, SIDS
- South Rumaila: Markazia (Rumaila), Janubia, Shamiya, Qurainat, Mishrif Shamiya, Mishrif Qurainat, Ratqa
Reserves
[edit]Rumaila reportedly holds an estimated 17 billion barrels of oil; which accounts for 12% of Iraq's oil reserves, estimated at 143.1 billion barrels.[6][7][8] The oil sits approximately 2,400 m (7,900 ft) below the surface which is considered an easy target for production.[2] At current production rate of 1,421,000 barrels per day (225,900 m3/d), the reserves-to-production ratio is just under 35 years.
Importance
[edit]
Rumaila oil field was critical in the 1990 Gulf War. Iraq, after accusing Kuwait of allegedly side-drilling under Iraqi soil, launched an attack on Kuwait on 2 August 1990.[13][14] In addition, Kuwait had been producing quantities of oil, which were above treaty limits established by OPEC.[20] In fact, before the Iraqi occupation of Kuwait in 1990, Kuwait had drilled only 8 vertical wells in its part of the Rumaila field and the production was limited due to different technical problems. The issue for Kuwait was territorial more than oil. Kuwait never drilled deviated wells that crossed the Iraqi borders. After the liberation of Kuwait in 1991, the United Nation border demarcation committee went back to the historical data and shifted the Kuwaiti border toward the north which meant that Iraq was producing from Kuwaiti territory.
During the 2003 invasion of Iraq, the Iraqi Ground Forces laid an 18 km long defensive minefield across it, which contained an estimated 100,000 mines.[21] Iraqi forces also set fire to parts of the oil field as a defensive maneuver, though these fires were later extinguished by Coalition forces.[22][23][24]
Cancer risk
[edit]Gas, when burned openly, can produce pollutants that are linked to cancer. Iraqi law prohibits gas-burning less than 10 km from people's homes, but the BBC found in 2022 that gas was being burned as close as 350 meters from people's homes. A leaked report from the Iraqi Ministry of Health blamed air pollution for a 20% rise in cancer in Basra between 2015 and 2018;[15] however, the Ministry of Health also prohibited its employees from speaking about the health damage.[15] Iraqi Environment Minister Jassem al-Falahi later admitted that "pollution from oil production is the main reason for increases in local cancer rates." None of the affected locals received compensation.[25]
The Rumaila Operating Organisation has reduced gas flaring at its operated facilities by more than 65% since 2016.[26]
See also
[edit]
References
[edit]- ^ Beydoun, Ziad (1988). The Middle East: Regional Geology and Petroleum Resources. Beaconsfield: Scientific Press Ltd. p. 179. ISBN 090136021X.
- ^ a b Master Sgt. David Bennett (2010-06-12). "Delegation sees Iraq oil field up close". US Army. Retrieved 2010-06-24.
- ^ Iraq Petroleum Handbook. London: IPC. 1948. p. 141.
- ^ Vassiliou, Marius (2009). Historical Dictionary of the Petroleum Industry. Plymouth, UK: Scarecrow Press, Inc. p. 272. ISBN 9780810859937.
- ^ Nairn, Alsharan, A.E.M., A.S. (2003). Sedimentary Basins and Petroleum Geology of the Middle East (2nd ed.). Amsterdam: Elsevier. p. 471. ISBN 0444824650.
{{cite book}}: CS1 maint: multiple names: authors list (link) - ^ a b "Iraq – Rumaila Oil Field (HVO IRQ-10)". ukti.gov.uk. Archived from the original on 21 May 2013. Retrieved 22 August 2012.
- ^ a b "Iraq increases oil reserves by 24%". BBC. 4 October 2010. Retrieved 22 August 2012.
- ^ a b "Iraq Lifts Oil Reserves Estimate to 143 Billion Barrels, Overtakes Iran". Bloomberg. 4 October 2010. Retrieved 22 August 2012.
- ^ "IBBC Members Profile – BP". We Build Iraq. Retrieved 22 September 2016.
- ^ Christopher Helman (2010-01-21). "The World's Biggest Oil Reserves. Chances are your energy needs are going to flow from one of these 10 fields in the future". Forbes. Archived from the original on 2013-01-24. Retrieved 2010-06-24.
- ^ Wolfe-Hunnicut, Brandon Roy (2011). The End of the Concessionary Regime: Oil and American Power in Iraq, 1958–1972. Ph.D dissertation: Stanford University. p. 70.
- ^ Shwadran, Benjamin "Middle East Oil: Issues and Problems", Schenkman Publishing, 1977.
- ^ a b Thomas C. Hayes, Confrontation in the Gulf's ; The Oilfield Lying Below the Iraq-Kuwait Dispute, The New York Times, September 3, 1990
- ^ a b J. Murdico, Suzanne (2003). The Gulf War : War and Conflict in the Middle East. The Rosen Publishing Group. pp. 13, 68. ISBN 9780823945511.
- ^ a b c "BP in oil field where 'cancer is rife'". BBC News. 2022-09-30. Retrieved 2023-06-18.
- ^ "bp responds to BBC story on Rumaila oilfield". bp. 16 February 2023.
- ^ Ahmed Rasheed (2009-10-09). "Iraq signs deal with BP, CNPC for Rumaila field". Reuters. Retrieved 2010-06-24.
- ^ "Top Ten Highest Producing Oil Fields". Oil Patch Asia. Archived from the original on 2 January 2014. Retrieved 7 January 2014.
- ^ "Rumaila Oil Field - the biggest producing field in Iraq". Retrieved 2024-04-25.
- ^ Thomas C. Hayes (September 3, 1990). "CONFRONTATION IN THE GULF; The Oilfield Lying Below the Iraq-Kuwait Dispute". The New York Times.
- ^ Chazan, Guy (December 16, 2012). "Iraq – back in the flow". Financial Times. Retrieved 7 January 2013.
- ^ http://www.iadc.org/dcpi/dc-novdec03/Nov3-Boots.pdf [bare URL PDF]
- ^ "CNN.com - UK: Iraq torches seven oil wells - Mar. 21, 2003". edition.cnn.com.
- ^ "Kuwait Oil Company". May 19, 2015. Archived from the original on 2015-05-19.
- ^ "Iraqi minister admits gas flaring cancer link". BBC News. 2022-10-17. Retrieved 2023-06-18.
- ^ "bp responds to BBC story on Rumaila oilfield". bp. 16 February 2023.