Cameron nets $100 million supply contract in Iraq
Equipment heading for giant Rumaila development project for BP & CNPC
Cameron has been awarded a supply contract valued at about $100 million by the Rumaila Operating Organization (ROO) in Iraq. The ROO is a joint venture between the state owned South Oil Company (SOC), BP and the China National Petroleum Corporation (CNPC). The scope includes equipment for new wells and rehabilitation of existing wells along with the associated aftermarket services for the next three years. This award from the ROO is further confirmation of Cameron's continuing support for the country of Iraq, BP and CNPC.
Jack B. Moore, Cameron Chairman, President and Chief Executive Officer said, "We are proud to be an integral part of the Rumaila development which is so important for the Iraq community and the ongoing efforts to rebuild the country." He further stated, "We will be supporting this important contract with parts, service, equipment storage and deployment from our new Iraq facility."
In 2009, BP, and China National Petroleum Corporation (CNPC), won a technical service contract with Iraq's state-owned South Oil Company (SOC) to expand production from the Rumaila oilfield, near Basra in southern Iraq.
BP and CNPC plan to invest approximately $15 billion in cash over the 20 year lifetime of the contract with the intention of increasing plateau production to 2.85 million b/d in the second half of the next decade. Production has been raised by 10 per cent from its current level of about 1 million b/d, and the companies have begun recouping costs. They are thought ot recieve around $2 a barrel fees earned on the incremental oil production.
The field is estimated to contain some 15% of Iraq's oil reserves.