Reuters reports that Baghdad has reached agreement with BP, Shell and Lukoil to restart stalled investment in Iraqi oil fields, allowing production to increase by 250,000-350,000 bpd in 2017.
According to documents seen by Reuters, the three firms agreed to spend in the second half of 2016 roughly half the budgets they proposed for 2015:
• BP to spend $1.8 billion this year at Rumaila. It had initially planned to spend $3.5 billion last year, which it revised down to $2.5 billion;
• Shell to spend $742 million; it proposed $1.5 billion last year; and,
• Lukoil to spend $1.08 billion; it proposed $2.1 billion last year.
Iraq has yet to reach agreements with Exxon Mobil, CNPC and Petronas regarding investment in their respective fields.