Eni Wins Contract in Iraqi Oil Field

• By Zacks Equity Research
• On 11:21 am EDT, Thursday October 15, 2009

A consortium, led by Eni SpA (NYSE: E - News) was awarded the license to develop the giant Zubair oil field in Iraq. Eni, which is the operator, will have a participation of 40% in the consortium, subject to adjustments. The other members include Occidental Petroleum Corp. (NYSE: OXY - News) and Korea Gas Corp. It also includes the participation of Southern Oil, the Iraqi state company, who has a 25% interest in the field.

 

The Zubair field currently produces 195,000 barrels of oil per day (Bbls/d). As a result of the expansion program, production at the field is expected to reach 1.125 million Bbls/d over the next seven years.

 

Eni’s job at the field consists of drilling more than 200 wells, construction of treatment facilities and the required collection network, as well as the overhaul of the existing plants. The service contract expires in 20 years with a provision to extend it by 5 years thereafter.

 

The explorative license for the Zubair field strengthens the long-term collaboration between Eni and Iraq, which dates back to the 1970’s. The license will allow Eni to further grow its production and reserves.

 

Eni is the leader in the Middle East region, where it operates in exploration, drilling, and in the engineering and construction sector.

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