BP, Europe's second-largest oil company, announced on Tuesday that it has increased output at Iraq's Rumalia oilfield by more than 10% to 1.066 million barrels per day, meeting a production goal the company agreed to when it won rights to re-develop the field in 2009.
An Iraqi oil official production at Rumalia has actually surged 20% to 1.275 million barrels per day. For every extra barrel BP is able to produce at the field, Iraq pays the British oil giant $2, the Wall Street Journal reported. BP expects to receive the first payment of cash or an equivalent value of crude oil in March, according to the Journal.
BP (BP) CEO Bob Dudley called the production milestone a ''great achievement,'' according to a company-issued statement. In the statement, BP said Rumalia is the fourth-largest oilfield in the world. PetroChina (PTR), China's largest oil company, is BP's partner at Rumalia.
Iraqi officials believe it is possible 1.5 million barrels can be pumped from Rumalia by the end of this year while BP has an ambitious production target of 2.85 million barrels per day for sometime in the future. The company did not disclose a target date for that production level to be reached.