Ownership
The field is owned by Iraq and subcontracted to BP and CNPC under Iraq Producing Field Technical Service Contract (PFTSC). BP is an operator of the project with 38% while CNPC and SOMO hold 37% and 25%, respectively. BP and CNPC will recover a renumerated fee of $2 per barrel in profits which will account to 15 to 20% rate of return on investment. Iraqi government and BP agreed to cut the initial bidding price per barrel from $3.99 to $2.00 in June 2009. ExxonMobil which also bid on servicing this field at a price $4.80 walked away due to price cutting terms by the Iraqi Government leaving BP and CNPC as winners of the contract. BP expects the costs will begin to be recovered after the production will be raised by 10% from the current output. The rehabilitation and expansion project will be managed by Rumaila Field Operating Organization (ROO) which will be staffed mainly from TEKFEN and smaller number of experts from BP and CNPC.
An estimated $15 billion will be spent on enhancing the operations at Rumaila over the next 20 years.
Read more about this topic: Rumaila Oil Field
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