BAGHDAD, Jan 25 (Reuters) - U.S. oil major Exxon Mobil and Royal Dutch Shell signed a final contract on Monday for the development of Iraq's 8.7-billion-barrel West Qurna Phase One oilfield.
The partners, who will work with an Iraqi state-run oil company, won the right to develop the supergiant field in negotiations with the Oil Ministry last year following Iraq's June oilfield auction, the first since the 2003 U.S. invasion.
Exxon's Regional Vice President Richard Vierbuchen and Shell Gas and Power Vice President Mounir Bouaziz signed the deal in the presence of Iraqi Oil Minister Hussain al-Shahristani in Baghdad.
The companies plan to increase output from the oilfield to 2.325 million barrels per day from 279,000 bpd now.
It is one of several deals following two oil contract auctions last year that have the potential to take Iraqi capacity to 12 million bpd -- rivalling top producers Saudi Arabia and Russia -- from 2.5 million bpd now.
(Reporting by Ahmed Rasheed, editing by Michael Christie) Keywords: IRAQ OIL/WESTQURNA (jim.loney@thomsonreuters.com; +964 7901 917 033; Reuters Messaging: jim.loney.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The partners, who will work with an Iraqi state-run oil company, won the right to develop the supergiant field in negotiations with the Oil Ministry last year following Iraq's June oilfield auction, the first since the 2003 U.S. invasion.
Exxon's Regional Vice President Richard Vierbuchen and Shell Gas and Power Vice President Mounir Bouaziz signed the deal in the presence of Iraqi Oil Minister Hussain al-Shahristani in Baghdad.
The companies plan to increase output from the oilfield to 2.325 million barrels per day from 279,000 bpd now.
It is one of several deals following two oil contract auctions last year that have the potential to take Iraqi capacity to 12 million bpd -- rivalling top producers Saudi Arabia and Russia -- from 2.5 million bpd now.
(Reporting by Ahmed Rasheed, editing by Michael Christie) Keywords: IRAQ OIL/WESTQURNA (jim.loney@thomsonreuters.com; +964 7901 917 033; Reuters Messaging: jim.loney.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
