Eni has been present in Iraq since 2009 and is performing development activities over a developed acreage of 1,074 square kilometres (446 square kilometres net to Eni). Development and production activities in Iraq are regulated by Technical Service Contract.
The contract was signed in 2010 between SOC (South Oil Company) and the JV formed by Eni Iraq, Oxy, Kogas and Missan. In October 2016, the US company Oxy left the consortium, seeling its stake to SOC, the state-owned company. In March 2017, SOC was renamed BOC (Basrah Oil Company). Eni is the lead contractor, with a 41.6% stake. The contract expires in 2036.
The last two years have been characterised by an increase in production of around 70%, from 250,000 bbl/d at the beginning of 2015 to the current level of around 450,000 bbl/d (Eni’s share in 2016 amounted to 67,000 bbl/d). Moreover, during the last two years there has also been a significant increase in the use of water injection as a means of maximising recovery of the reserves in the field.
At the beginning of March 2016, three new generation plants for the oil, gas and water treatment (Initial Production Facilities – IPF) started. Those plants together with existing restructured and modernized facilities increased oil and natural gas treatment capacity of Zubair field (Eni’s interest 41.6%) to approximately 650 kbbl/d and will ensure the maximization of the associated gas utilization. In addition, these new facilities have also a water re-injection capacity of approximately 300 kbbl/d that will boost the Zubair’s hydrocarbons production and will achieve production plateau.
The first stage of development activities (Rehabilitation Plan) of Zubair field was completed with the start-up of these new facilities. Ongoing development activities concerned an additional development phase (Enhanced Redevelopment Plan) of the Zubair field, to achieve a production plateau of 700 kbbl/d and will ensure the application of associated gas to power generation.
DGS North, a new generation power plant with a capacity of 200,000 bbl/d, will come into operation in the first quarter of 2018. In the executive phase, the project has a progress level of 90%.
Construction is also underway, as part of the Zubair project, of a 300MW power plant (PPG) that will provide electricity for the entire Zubair field through a high-voltage distribution network, also currently under construction. The power station is expected to be operational in the first quarter of 2019.
Offices and contacts
Eni Iraq B.V.
St. 15 House 18