More Mega Upstream Deals
Italian oil giant ENI has signed a new deal to increase its activities in Kazakstan.
Under the agreement, Eni and KazMunayGas will jointly study the Isatay and Shagala exploration areas located in the Caspian Sea.
Other reports are talking of $50 billion investments. Whether or not that happens, there is no doubt it is a big deal for the Italians. It is another move that shows how Kazakhstan wants to pull in more foriegn investment. Perhaps seeing opportunities created by the less welcoming approach of many other oil states.
It also comes on the heels of another big deal for them.
Eni has today been awarded the license for the development of the Zubair giant field in Iraq, following a successful first round bid. The license has been awarded to an Eni-led consortium (with Eni as Operator), consisting of the US Occidental Petroleum Corporation and Korea Gaz Corporation. The Zubair field, one of the largest Iraqi oil fields, currently produces 195,000 barrels of oil per day. In the next seven years, under the field’s expansion programme, production is expected to reach a plateau level of 1.125 million barrels of oil per day.
Today another big deal has been announced by Iraq.
Iraq has struck a deal with a consortium led by US oil giant Exxon Mobil, and including Royal Dutch Shell, to develop the West Qurna 1 oil field.
Its good to see some more movement on Iraq. I cannot see from the reports enough however to see who blinked first. The majors had originally walked away from the deals, claiming the terms were too onerous.
For those of us worried about long term oil prices, the prospect of big increases in Iraqi oil production is definitely a good thing.
