Published: 2017-07-09 15:17
Last Updated: 2017-07-09 15:22
Iraq has begun drilling the first well in the Huwaiza oil field near the Iranian border, which is though to contain up to one billion barrels in reserves, Reuters quoted the Iraqi oil ministry as saying on Sunday.
The development of the oil field is being carried out by the state-run Maysan Oil Company, which oversees the oil and natural gas industry in the Maysan region of southeastern Iraq, the ministry said in a statement.
The second largest OPEC producer after Saudi Arabia, Iraq seeks to boost its production capacity to five million barrels per day (bpd) by the end of the year, from about 4.7 million bpd now, Reuters reported.
As part of an agreement between oil exporting countries to curb supply in order to support crude prices, Iraq produces 4.3 million bpd, lower than its potential capacity.
The well drilling launch at Huwaiza, and a separate ceremony marking the beginning of the expansion work in the Halfaya oil field, also in Maysan, was attended by Iraq’s oil minister Jabar Al Luaibi, a separate oil ministry statement said on Sunday.
Reuters reported that the expansion of the Halfaya oil field, which is operated by PetroChine, will double its capacity in 2018 to 400,000 barrels per day.