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Oil Prices Shoot Up On Large Inventory Draw

Oil Prices Shoot Up On Large Inventory Draw

Oil prices rose on Wednesday…

Exxon Shale Deal With Algeria Falls Victim To Protests

Exxon Shale Deal With Algeria Falls Victim To Protests

Widespread anti-government protests in Algeria…

BP to Reduce Iraqi Production Target by more than One Million Barrels a Day

In order to ensure that oil reserves last longer, Baghdad has reduced its peak production targets, and has asked major oil producers in the country to help make these cuts. As a result BP is considering cutting its output target for the giant Rumaila oilfield by more than one million barrels a day.

“It is something the government has asked us to do,” said Bob Dudley, the Chief Executive of BP.

Iraq’s original production target of 12 million barrels a day by 2017 has been cut to a more realistic target of nine million barrels a day, and operators at southern oil fields such as the Rumaila are working to lower their production rates to comply. Even then many experts believe that nine million will be a difficult target to achieve due to the lack of infrastructure.

Related Article: Kurdistan: Our Pick for the Next Big Buy Out

According to Reuters, BP began discussing the possibility of reducing targets last year and in December sources said that BP was close to agreeing a deal to cut output at Rumaila to between 1.8 million and 2.2 million barrels a day.

The Iraqi oil ministry has already made agreements to lower production targets with Lukoil at West Qurna-2 and Eni at Zubair, and continues to negotiate with Royal Dutch Shell at Majnoon and Exxon at West Qurna-1.

By. Charles Kennedy of Oilprice.com



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