Rumaila Field
Under Abdul-Karim Qasim, the oilfield was nationalised by the Iraqi government by Public Law No. 80 on 11 December 1961. Since then, this massive oil field has remained under Iraqi control. The assets and rights of IPC were nationalized by Saddam Hussein in 1972, and those of BPC in 1975. The dispute between Iraq and Kuwait over alleged slant-drilling in the field was one of the reasons for Iraq's invasion of Kuwait in 1990.
After decades of under investment, by the early 2000s, the field was suffering not only from the natural base decline of its reservoirs, but also from ageing infrastructure and equipment, compromising production capacity, environmental protection and safety.
The town of North Rumaila is called "the cemetery" by the locals. A local environmental scientist told the BBC in 2022 that cancer in the area was so rife it was "like the flu".
Following the BBC story, the Rumaila Operating Organisation (ROO) has been reducing gas flaring from its operated facilities at Rumaila. This reduced by a further 20% during 2022 – contributing to a reduction of more than 65% over the past seven years.
Ownership
The field is owned by Iraq (Basra Oil Company). Following bidding rounds in the first decade of the 2000s, a Technical Service Contract was signed between BOC and BP, PetroChina and the State Oil Marketing Organization (SOMO) in 2009. This detailed the establishment of ROO as the operator of the oilfield and led to the introduction of new technologies and infrastructure, training and equipment for staff, and an extensive drilling and expansion programme.
In June 2022, Basra Energy Company Ltd (BECL), a company wholly owned by PetroChina and bp which manages the companies’ interests at the Rumaila oilfield, assumed the lead contractor role from bp, under the existing Technical Services Contract. BECL was established to enable continued and optimized investment in the field, including enhanced access to external financing. ROO remained as the operator. The Technical Services Contract was extended in 2014 and now runs until 2034.
Production
Transformation of the field began in 2010 and since then production has risen by 35%. During 2022, the field's reported production averaged 1,421,000 barrels per day (225,900 m/d) making up around 30% of Iraq's oil production of 4.6 million barrels per day (730,000 m/d). As of 2019, about 550 production wells were operating at Rumaila.
Production Facilities
The field is operated by Rumaila Operating Organisation. Facilities include a headquarters, waste management centre, supply base and training academy. There are also seven operational cluster pump stations and with 14 degassing stations - seven in the North field and seven in the South field. These degassing stations provide 3-phase separation (oil, water, and natural gas). Crude oil is sent by pipeline to local refineries or ports in Basra for export. Natural gas is provided to the Basrah Gas Company, as well as being used in the recently built Rumaila Power Plant which provides electricity to various oilfield facilities. Water is disposed into disposal wells. Degassing station names:
- North Rumaila: DS1, DS2, DS3, DS4, DS5, NIDS, SIDS
- South Rumaila: Markazia (Rumaila), Janubia, Shamiya, Qurainat, Mishrif Shamiya, Mishrif Qurainat, Ratqa
Reserves
Rumaila reportedly holds an estimated 17 billion barrels of oil; which accounts for 12% of Iraq's oil reserves, estimated at 143.1 billion barrels. The oil sits approximately 2,400 m (7,900 ft) below the surface which is considered an easy target for production. At current production rate of 1,421,000 barrels per day (225,900 m/d), the reserves-to-production ratio is just under 35 years.
Importance
Rumaila oil field was critical in the 1990 Gulf War. Iraq, after accusing Kuwait of allegedly side-drilling under Iraqi soil, launched an attack on Kuwait on 2 August 1990. In addition, Kuwait had been producing quantities of oil, which were above treaty limits established by OPEC. In fact, before the Iraqi occupation of Kuwait in 1990, Kuwait had drilled only 8 vertical wells in its part of the Rumaila field and the production was limited due to different technical problems. The issue for Kuwait was territorial more than oil. Kuwait never drilled deviated wells that crossed the Iraqi borders. After the liberation of Kuwait in 1991, the United Nation border demarcation committee went back to the historical data and shifted the Kuwaiti border toward the north which meant that Iraq was producing from Kuwaiti territory.
During the 2003 invasion of Iraq, the Iraqi Ground Forces laid an 18 km long defensive minefield across it, which contained an estimated 100,000 mines. Iraqi forces also set fire to parts of the oil field as a defensive maneuver, though these fires were later extinguished by Coalition forces.
Cancer risk
Gas, when burned openly, can produce pollutants that are linked to cancer. Iraqi law prohibits gas-burning less than 10 km from people's homes, but the BBC found in 2022 that gas was being burned as close as 350 meters from people's homes. A leaked report from the Iraqi Ministry of Health blamed air pollution for a 20% rise in cancer in Basra between 2015 and 2018; however, the Ministry of Health also prohibited its employees from speaking about the health damage. Iraqi Environment Minister Jassem al-Falahi later admitted that "pollution from oil production is the main reason for increases in local cancer rates." None of the affected locals received compensation.
The Rumaila Operating Organisation has reduced gas flaring at its operated facilities by more than 65% since 2016.
See also
References
- ^ Beydoun, Ziad (1988). The Middle East: Regional Geology and Petroleum Resources. Beaconsfield: Scientific Press Ltd. p. 179. ISBN 090136021X.
- ^ Master Sgt. David Bennett (2010-06-12). "Delegation sees Iraq oil field up close". US Army. Retrieved 2010-06-24.
- ^ Iraq Petroleum Handbook. London: IPC. 1948. p. 141.
- ^ Vassiliou, Marius (2009). Historical Dictionary of the Petroleum Industry. Plymouth, UK: Scarecrow Press, Inc. p. 272. ISBN 9780810859937.
- ^ Nairn, Alsharan, A.E.M., A.S. (2003). Sedimentary Basins and Petroleum Geology of the Middle East (2nd ed.). Amsterdam: Elsevier. p. 471. ISBN 0444824650.
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