The partners developing the 4 billion-barrel Zubair field in the south of Iraq expect to receive their first payment in the form of crude by the end of July.
Italy’s Eni, South Korea’s Korea Gas Corporation (Kogas) and the US’ Occidental Petroleum will receive a total of 1 million barrels of crude oil as part of its technical service contract signed in early 2010.
Kogas expects to receive 400,000 barrels before the end of July, for its part in the development of the field, according to a 23 July company statement.
After increasing production at the field by more than 10 per cent in January, the consortium is eligible to receive a remuneration fee of $2 a barrel, in the form of crude, as well as recovering capital expenditure investments from the government. The group revealed in December 2010 that this has been achieved.
The UK’s BP was the first international oil company working in Iraq to receive a remuneration payment in May, lifting a cargo of approximately 2 million barrels of Basra Light crude oil, worth some $200m, from the Rumaila oil field. This was followed by a similar shipment for BP’s partner, China National Petroleum Corporation (MEED 19:5:11).
The US’ ExxonMobil and UK-Dutch Shell Group, working at the West Qurna-1 field, are also eligible to receive payments after reaching their 10 per cent production milestone.