Dec. 3 (Bloomberg) -- Iraq will soon sign deals with Exxon Mobil Corp., BP Plc and Royal Dutch Shell Plc to reduce production targets at several of its biggest oil fields, including Rumaila, West Qurna-1 and Majnoon.
OPEC’s second-largest producer will agree, within days, to curb output at the BP-operated Rumaila oil field to 2.1 million barrels a day, from 2.9 million, Abdul Kareem al-Luaibi, Iraq’s oil minister, told reporters in Vienna today. He was speaking before a meeting of the Organization of Petroleum Exporting Countries in the Austrian capital tomorrow.
Iraq will also reach an accord in the next few days to decrease the output plateau for its West Qurna-1 oil field to a range of 1.6 million barrels a day to 1.8 million, from an original target of about 2.8 million, Luaibi said today.
Political tensions and violence have slowed Iraq’s recovery, prompting the government to decrease its overall long- term production goal to about 9 million barrels a day. It’s original nationwide target had been 12 million barrels a day. Its efforts to cut targets at individual fields are related to infrastructure issues and the nationwide reduction in planned output.
At the Majnoon field, Iraq may cut the production target “soon” to 1.2 million barrels a day, from 1.8 million originally, Luaibi said. That compares with a proposal by Royal Dutch Shell Plc, lead operator of the field, to pump 1 million barrels a day. The company holds 45 percent of the site, while Malaysia’s state oil company Petroliam Nasional Bhd. has a 30 percent stake.
Majnoon will produce 200,000 barrels a day by the end of the year, Asim Jihad, a spokesman for Oil Ministry, said Oct. 4.
BP is pumping an average of 1.4 million barrels a day at Rumaila, Michael Townshend, the company’s regional president, said on Nov. 11.
Exxon Mobil, which operates West Qurna-1, estimated the site will produce about 600,000 barrels a day by the end of this year. The company sold stakes in the installation to PetroChina Co., Indonesia’s state-owned PT Pertamina and Shell.
Iraq pumped 3.1 million barrels a day last month, up 20,000 barrels a day from October, according to a monthly survey by Bloomberg.
Luaibi said in May that Iraq had made a similar pact with Eni SpA for decreases at the Zubair field, following another agreement with OAO Lukoil at the West Qurna-2 project in January.
--Editors: Stephen Voss, Margot Habiby