Iraq has agreed on a deal with U.S. company Schlumberger Ltd. (NYSE: SLB) to drill 40 wells in the giant Majnoon oil field, the Oil Ministry said on Dec. 19.
Iraqi Oil Minister Thamir Ghadhban said in a statement that the agreement with the oil services firm was aimed at boosting production from Majnoon.
A deal was also signed on Dec. 19 between Basra Oil Co., which manages Majnoon, and Oil Exploration Co., two state-run Iraqi firms, to conduct a seismic survey in Majnoon.
“Carrying out a three-dimensional seismic survey by the Oil Exploration Co. in Majnoon will help to obtain accurate data and boost production at the field,” Ghadhban said.
In June, Royal Dutch Shell (NYSE: RDS.A) exited Majnoon in southern Iraq and handed the field’s operations to Basra Oil.
Crude oil output from Majnoon is more than 240,000 barrels per day (bbl/d), the statement said.
Iraq is the second-largest producer in OPEC after Saudi Arabia and pumps around 4.6 MMbbl/d, below its capacity, in line with global, OPEC-led supply cuts aimed at supporting prices.
The bulk of Iraq’s oil is exported via southern terminals, which account for more than 95% of the country’s state revenue.