Iraq’s Deputy Prime Minister for Energy Hussain Al-Sharistani inaugurated the Halfaya field today, formally adding another active supergiant field to its assets in the south of the country.
Halfaya, located in the Maysan province of Iraq near the Iranian border, has 4.1 billion barrels in proven reserves, and has been producing oil since early June, with Iraqi officials putting the initial flow rate at 70,000 bpd, after a CNPC official put production at 100,000 bpd.
Like other fields in the area, initial field development was delayed as a mine and ordnance clearing unit swept the field.
CNPC’s PetroChina (37.5%) and its partners Petronas (18.75%) and France’s Total (18.75%) signed a 20-year oil production agreement with Iraq’s South Oil Company (25%) in 2010 to boost production to 535,000 bpd by 2017. The consortium is to be paid $1.40 per barrel of oil produced before tax.
Investment in early production facilities and phase one of construction at the site is thought to have costs a total of $570 million of investment. CNPC has started work on the second construction phase at the site.
