Eni, Occidental Petroleum and Korea Gas will redevelop the Zubair oil field in southern Iraq under a technical service contract with the Iraqi state-owned South Oil Company and Missan Oil as state partner.
The Eni-led consortium plans to increase production at the oil field from its existing level of about 200,000bpd to 1.2 million bpd in six years and to keep output at that level for seven years.
The group will earn $2 per barrel on incremental production after output has increased by 10% from its current level. The agreement includes a cost-recovery mechanism.
The development of the Zubair field, one of the largest discovered fields in the world, will support Iraq in becoming a major player in global oil markets.
