Rumaila Operating Organization

Rumaila Operating Organization (ROO)
Private
Industry Petroleum
Founded 2010
Founder BP,
CNPC,
South Oil Company
Headquarters Rumaila oil field
Website http://www.rumaila.iq

Rumaila Operating Organization (ROO) is an international petroleum company based in Iraq. ROO is part of the Iraq Basra Oil Company and of a consortium with BP and PetroChina, which manages Rumaila in southern Iraq, one of the largest oilfields in the world.

Overview

Rumaila Operating Organization was founded by BP, CNPC and Basra Oil Company (BOC) (formerly South Oil Company (SOC)) in order to manage the 20-year rehabilitation and expansion of Rumaila oil field in southern Iraq,[1] which was discovered in 1953 and has been in operation since 1954, with extensive exploration and production since the late 1960s / 1970s.[2][3][4][5]

Rumaila oil field is part of the so-called class of super-giant oilfields, with more than one billion barrels of recoverable oil. Current estimations of Rumailas total reserves lie around 17 billion barrels. Production from the field is around one third of the countries total oil output.[6]

The field is located in Southern Iraq, around 20 miles (32 km) from Kuwaits border and played an important role in the 1990 Gulf War, the 2003 Iraq invasion and following the Iraq war.[4][7][8][9][10][11][12]

A new round for bidding of southern oil-fields in Iraq was first announced in 2008, following several years of turmoil due to the war and resulting in political and military unrest.

A Technical Service Contract was signed between BOC, BP, PetroChina and the State Oil Marketing Organization (SOMO) in 2009, detailing the establishment of ROO, the introduction of new technologies and infrastructure, training and equipment of staff, and an extensive drilling and expansion program at the Rumaila oilfield. Basra Oil, BP and PetroChina are the lead contractors. The agreement was extended in 2014 so that it now runs until 2034.[13][14][15][16][17]

Rumaila Operating Organization planned to hire mainly local employees to oversee the operations, with a smaller number of technical experts and managers from BP and CNPC.[18] The operations of the company were scheduled to begin in July 2010.[19] Plans by the consortium detailed the spending of more than $15 billion, between 2010 and 2020, to develop the field.[20][21]

Initial production targets were set to raise the average daily production from 1.06 to 1.2 million barrels per day (bpd) and were reached by BP and the consortium in December 2010. By 2014, the production consistently ran over 1.3 million bpd and by January 2017 it had reached over 1.4 million bpd. Production since 2010 has increased by over 30%, putting it at a 27-year-high and for the first time in the oilfields history has been above 1.2 million bpd for five consecutive years. Current plans are to raise production to around 2 million bpd by 2020.[5][12][22]

Since construction began in 2010, 250 new wells have been drilled, increasing the total amount by 50% and 14 degassing stations were renovated, environmentally accessed and land cleaned up. The connecting infrastructure, new roads, maintenance buildings, staff and office buildings were erected around the same time period and currently a new power station is in construction as well. Today the field has around 550 producing wells and 150 injection wells.[16][23][24]

BP (38% ownership, headquartered in UK) and CNPC (37%, China) had earlier signed a contract with SOC (25%, Iraq) in 2009 to develop and increase production at Rumaila field, Iraq's largest.[25]

Under ROO, the field has produced around 3 billion barrels of oil in total, generating a revenue of around $200 billion.[5][12]

Around 6,500 to 7,000 Iraqis employees work at Rumaila, assisted by over 100 experts from BP, PetroChina and other international companies. Another 22,000-25,000 locals are involved in operations at Rumaila through contractors, operating throughout the entire value and supply chain.[16][20][26]

ROO also finances and runs The Rumaila Social Welfare Fund (SWF) and the Rumaila Education Fund (REF), providing different forms of support, training, education, health and infrastructural aids to communities surrounding the Rumaila oilfield.[27][28]

References

  1. ↑ "BP and CNPC to Develop Iraq's Super-Giant Rumaila Field" (Press release). BP. 2009-11-03. Archived from the original on April 19, 2013. Retrieved 2016-04-24.
  2. ↑ "BP takes risk in Iraq while others balk". Financial Times. July 2, 2009. Retrieved August 16, 2018.
  3. ↑ "Iraq National Oil Company Nears Desert Production". The New York Times. December 13, 1971. Retrieved August 16, 2018.
  4. 1 2 "Confrontation in the Gulf; The Oilfield Lying Below the Iraq-Kuwait Dispute". The New York Times. 1990. Retrieved August 16, 2018.
  5. 1 2 3 "A long history of producing oil". Rumaila Operating Organization. Retrieved August 24, 2018.
  6. ↑ "Oil majors close to agreeing cuts in Iraqi production targets". Financial Times. December 3, 2013. Retrieved August 16, 2018.
  7. ↑ "No Booty for Iraq. None". The New York Times. 1990. Retrieved August 16, 2018.
  8. ↑ "Marine lay their hands on a "Jewel"". The Washington Post. April 6, 2003. Retrieved August 16, 2018.
  9. ↑ "Marine Corps Removes a Field Commander in Iraq". The Washington Post. April 6, 2003. Retrieved August 16, 2018.
  10. ↑ "Confused Start, Decisive End". The Washington Post. April 13, 2003. Retrieved August 16, 2018.
  11. ↑ "A rare super-giant field". Rumaila Operating Organization. Retrieved August 16, 2018.
  12. 1 2 3 "Rumaila: Iraq's greatest source of revenue". Rumaila Operating Organization. Retrieved August 24, 2018.
  13. ↑ "Few Bidders to Develop Iraqi Oil and Gas Fields". The New York Times. June 30, 2009. Retrieved August 16, 2018.
  14. ↑ "Iraq reopens its oil reserves to foreign companies, but few rush in". The New York Times. February 3, 2009. Retrieved August 16, 2018.
  15. ↑ "Iraq to Open Oil-Field Bidding". The Washington Post. April 17, 2008. Retrieved August 16, 2018.
  16. 1 2 3 "Modernizing one of the world's great oilfields". Rumaila Operating Organization. Retrieved August 24, 2018.
  17. ↑ "Rumaila: A new partnership". Rumaila Operating Organization. Retrieved August 16, 2018.
  18. ↑ "CNPC and BP to Rejuvenate Iraq's Rumaila Oilfield" (Press release). CNPC. 2009-11-03. Archived from the original on July 22, 2012. Retrieved 2016-04-24.
  19. ↑ "BP President of Iraq on the Progress of the Rumaila Oil Field Development". Iraq Directory. 2010-06-21. Retrieved 2016-04-24.
  20. 1 2 "Iraq's Oil Patch Opens the Spigot". The Wall Street Journal. November 11, 2010. Retrieved August 24, 2018.
  21. ↑ "Iraq Projects $100 Billion Investment in Oil Fields". The Wall Street Journal. October 19, 2011. Retrieved August 24, 2018.
  22. ↑ "Iraq Warns Oil Companies of Spending Cuts". The Wall Street Journal. September 14, 2015. Retrieved August 24, 2018.
  23. ↑ "Baghdad bureaucracy stymies BP's ambitions". Financial Times. February 23, 2014. Retrieved August 24, 2018.
  24. ↑ "A field-wide refurbishment programme". Rumaila Operating Organization. Retrieved August 24, 2018.
  25. ↑ "BP, CNPC sign contract to develop Iraq's Rumaila field". RIA Novosti. 2009-11-03. Retrieved 2016-04-24.
  26. ↑ "Encouraging and supporting enterprise beyond the field". Rumaila Operating Organization. Retrieved September 17, 2018.
  27. ↑ "Working with our community". Rumaila Operating Organization. Retrieved September 17, 2018.
  28. ↑ "Basra: a centre of oil and gas expertise". Rumaila Operating Organization. Retrieved September 17, 2018.
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