Producing Oil from New Fields Influences OPEC Deal

Producing Oil from New Fields Influences OPEC Deal

Sunday, 11 March, 2018 - 10:15
Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq October 14, 2016. REUTERS/Essam Al-Sudani
London - Asharq Al-Awsat
As OPEC awaits an expected 1.6 million bpd increase in demand of oil this year, some oil countries are preparing to start producing from oilfields that were being rehabilitated or under maintenance in an attempt to benefit from this increase.

Saturday, a source from Iraq North Oil Company announced that operations have started in Ageel oilfield (55 km north east Tikrit).

A source said that the oilfield output reached 17,000 barrels per day after the completion of the first phase of rehabilitation – he added that the rehabilitation is ongoing in other oilfields to reach the output prior to ISIS dominance of the region, up to 35,000 bpd.

ISIS controlled the oilfield selling crude oil and was using some of it for refinement.

For his part, Governor of Nineveh Nawfal al-Akoub revealed on Saturday that preparations are ongoing to operate two oilfields (Qayara and Najma) south Mosul, 400 km north Baghdad. He added that committees from the Iraqi Oil Ministry visited Qayara and Najma oilfields.

The two oilfields were put under huge pressures due to the security condition in the region, but the ministry determined a short period to re-operate the two oilfields during the coming days, he added.

This coincides with OPEC members and independent producers commitment of around 133 percent to reduce the output in January, within an agreement to curb daily product around 1.8 million bpd until the end of the year.

Total, the French company heading the 230,000-barrel per day Kaombo project, said the first vessel that will pump and store oil is on its way to West Africa.

The project is slated to cause a 14 percent jump in oil production compared to the 2017 national average, which stood at 1.632 million barrels per day. It will be able to pump 115,000 bpd, exactly half of the project’s final expected output.

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