Bloomberg Businessweek, Apr 11, 2011
Halliburton Co. said Monday that it has been contracted by Exxon Mobil Corp. to use three drilling rigs to provide oil drilling services at a large field under development in southern Iraq.
The contract from ExxonMobil Iraq Ltd. covers services for 15 wells at the 8.6 billion-barrel West Qurna Phase I oil field, one of Iraq's largest. Financial terms of the deal were not disclosed.
Exxon's partners in the Qurna project include two Iraqi state-owned companies and an affiliate of Royal Dutch Shell PLC. ExxonMobil Iraq is the lead contractor on the field, with a 60 percent stake [please see remarks below -- D.R.]. It said last month that initial field production at the Qurna I field increased 17 percent to 285,000 barrels per day, exceeding its 10 percent improvement target. Under an agreement between Iraq and the companies, production from the West Qurna I field should reach 2.825 million barrels a day after 6 to 7 years [please see my post here -- D.R.].
Shares of Houston-based Halliburton rose 8 cents to $48.21 in morning trading. [Full story]
(ExxonMobil subsidiary Exxon Mobil Iraq Limited with 60% interest is the lead contractor working with the South Oil Company of Iraq to redevelop and expand the West Qurna I field along with the Oil Exploration Company of Iraq with 25% interest and Shell West Qurna B.V., a Royal Dutch Shell affiliate -- 15% interest. In August 2010, Halliburton announced it had been awarded a contract by Italian oil company Eni to provide a range of integrated energy services to help redevelop the Zubair field in southern Iraq. Halliburton will perform services such as wire-line logging, perforating, acidizing and well testing on 20 wells. For Iraq's oil production targets, please read my post "Iraq Says to Produce 6.5 mil b/d by 2014; Disputes IMF Figures," here. For Halliburton's profits, please see my post here, including remarks. -- D.R.)