Iraq’s Oil Ministry is considering plans to reverse declining production levels at its fields in the north of the country.

According to a 30 October report by the US’ Special Inspector General for Iraq Reconstruction (Sigir), output has declined as a result of “production zones shrinking, geological structures breaking down and well pressures dropping”. Production in Iraq’s southern fields have lifted the country’s output and exports to record levels,

The Oil Ministry plans to nearly double overall production from five northern fields from 570,000 barrels a day (b/d) to more than 1 million b/d by 2017.

Poor management of the fields has also proved detrimental. Many of Iraq’s fields, including the Kirkuk field, suffered damage to their reservoirs as a result of the reinjection of fuel oil and refinery residues, while the country was under UN sanctions from 1990 to 2003. The injection of fuel oil into a reservoir increases the viscosity of the crude, making flows to the surface more difficult and in some cases the damage to reservoirs can be irreparable.

The focus of international oil companies has been on the more productive south of Iraq and in the semi-autonomous Kurdistan region, although the Oil Ministry has had plans to develop its northern fields for some time. The 4-billion-barrel Kirkuk oil field was one of six included in Iraq’s first oil field licensing round in June 2009, but was not awarded.

In late 2011, state-owned North Oil Company (NOC) asked international oil companies to submit bids for the development of the Kirkuk field, increasing production by 300,000 b/d within five years. However, there has been no progress with the scheme.

In March, NOC was reported to have signed a preliminary deal with UK oil major, BP to increase production. Again, there has been no progress.

The field is divided into three structures. Baba and Avanah are operated by NOC, while the Khurmala Dome is operated by the Erbil-based KAR Group. The company is beginning seismic work to map the reservoirs in the formation as part of its own effort to increase production from 60,000 b/d to 100,000 b/d.