Iraq Greenlights Halfaya Phase 3 Development

Work has begun on third phase development of Iraq’s Halfaya oil field to double capacity to 400,000 b/d. Halfaya is operated by PetroChina (the listed arm of Chinese state CNPC, 45%) with Malaysia’s Petronas (22.5%), France’s Total (22.5%) and Iraqi state Missan Oil (MOC, 10%).

MOC on 25 April reported 2016 output from fields under its remit of 363,000 b/d, the bulk of which came from Halfaya. MOC Director General Adnan Noshi says work has begun on a 200,000 b/d central production facility with CNPC engineering subsidiary CPECC awarded the contract slated for end-2018 completion.

Halfaya is one of five fields providing crude for the Basra Heavy stream launched in 2015 and the second largest contributor to the grade behind Lukoil’s West Qurna II, which averaged a record 408,000 b/d last year. Lukoil expects 2017 output to remain relatively flat. (CONTINUED - 263 WORDS)