Schlumberger wins contract in Iraq's W.Qurna

Schlumberger wins contract in Iraq’s W.Qurna

Schlumberger will create new wells as part of the Exxon-led consortium's 20-year development contract with Iraq.

May 9, 2011 1:55 by p.deleon

US oil major ExxonMobil and its partners have awarded a contract to oil services firm Schlumberger Ltd to drill 15 new wells in Iraq’s West Qurna Phase One oilfield, an industry source familiar with the matter said.

The contract award was finalised days ago but a final contract is yet to be signed with Schlumberger, the source told Reuters.

The new wells are part of the Exxon-led consortium’s plan to rehabilitate West Qurna, for which it signed a 20-year development contract with Iraq last year.

Current output at West Qurna Phase One stands at around 340,000 barrels per day, the source said.

In March, Exxon said production from West Qurna rose to 285,000 barrels per day, above the 10 percent target set under technical services contract.

Exxon and Royal Dutch Shell were awarded the deal to develop the 8.7-billion-barrel West Qurna Phase One field in an auction held by Iraq in 2009 for oilfield development contracts.

Last year, Schlumberger was awarded a contract to drill 10 wells in West Qurna. (Reporting by Baghdad bureau)