Basra Oil Company ( BOC ) ( Arabic : شركة نفط البصرة ), formerly Iraqi South Oil Company , is a national Iraqi company responsible for the oil in the south of Iraq . It is situated in Basra . BOC is one of the major fundamental formations of the Iraq National Oil Company (INOC). It was the first nucleus and the basis of national direct investment projects in the 1970s, where the BOC was subsidiary to the national company.
20-783: Events and activities have escalated steadily and rapidly, rising since the beginning of the 1970s. Investment and development stages of the north Rumaila field were completed in three stages, leading to a rate of production of 42 million tons per year and this coincided with the expansion of works in all fields. The expansion began with drilling works, building and expanding production facilities, and implementing investment projects associated with natural gas fields in north and south Rumaila. Also developing new fields in Luhais, Saba, Nuhran Ben Ummer and oil fields in Maysan . Laying out an exporting pipe line, expanding export facilities and infrastructure sites for
40-504: A company wholly owned by PetroChina and bp which manages the companies’ interests at the Rumaila oilfield, assumed the lead contractor role from bp, under the existing Technical Services Contract. BECL was established to enable continued and optimized investment in the field, including enhanced access to external financing. ROO remained as the operator. The Technical Services Contract was extended in 2014 and now runs until 2034. Transformation of
60-554: A headquarters, waste management centre, supply base and training academy. There are also seven operational cluster pump stations and with 14 degassing stations - seven in the North field and seven in the South field. These degassing stations provide 3-phase separation (oil, water, and natural gas). Crude oil is sent by pipeline to local refineries or ports in Basra for export. Natural gas is provided to
80-713: Is estimated to contain 17 billion barrels, which accounts for 12% of Iraq's oil reserves, estimated at 143 billion barrels. Rumaila is said to be the largest oilfield ever discovered in Iraq and one of the three largest oilfields in the world. Under Abdul-Karim Qasim , the oilfield was nationalised by the Iraqi government by Public Law No. 80 on 11 December 1961. Since then, this massive oil field has remained under Iraqi control. The assets and rights of IPC were nationalized by Saddam Hussein in 1972, and those of BPC in 1975. The dispute between Iraq and Kuwait over alleged slant-drilling in
100-431: Is the main reason for increases in local cancer rates." None of the affected locals received compensation. The Rumaila Operating Organisation has reduced gas flaring at its operated facilities by more than 65% since 2016. State Organization for Marketing of Oil State Organization for Marketing of Oil (SOMO) ( Arabic : شركة تسويق النفط ) is an Iraqi national company responsible for marketing Iraq's oil. It
120-575: The BBC found in 2022 that gas was being burned as close as 350 meters from people's homes. A leaked report from the Iraqi Ministry of Health blamed air pollution for a 20% rise in cancer in Basra between 2015 and 2018; however, the Ministry of Health also prohibited its employees from speaking about the health damage. Iraqi Environment Minister Jassem al-Falahi later admitted that "pollution from oil production
140-532: The BBC in 2022 that cancer in the area was so rife it was "like the flu". Following the BBC story, the Rumaila Operating Organisation (ROO) has been reducing gas flaring from its operated facilities at Rumaila. This reduced by a further 20% during 2022 – contributing to a reduction of more than 65% over the past seven years. The field is owned by Iraq (Basra Oil Company). Following bidding rounds in
160-487: The Basrah Gas Company , as well as being used in the recently built Rumaila Power Plant which provides electricity to various oilfield facilities. Water is disposed into disposal wells. Degassing station names: Rumaila reportedly holds an estimated 17 billion barrels of oil; which accounts for 12% of Iraq's oil reserves, estimated at 143.1 billion barrels. The oil sits approximately 2,400 m (7,900 ft) below
180-457: The Iraqi occupation of Kuwait in 1990, Kuwait had drilled only 8 vertical wells in its part of the Rumaila field and the production was limited due to different technical problems. The issue for Kuwait was territorial more than oil. Kuwait never drilled deviated wells that crossed the Iraqi borders. After the liberation of Kuwait in 1991, the United Nation border demarcation committee went back to
200-467: The company was able to restore production to 2.15 million barrels per day (342,000 m/d) during the first quarter of the year 2004. In 2019, the company has entered into a deal with a giant Holland-based construction company, Boskalis, In what may be the largest offshore infrastructure project ever, Boskalis has undertaken over a three-year period to build the company an artificial island that will bring in oil through two new pipelines and send it out to
220-562: The company. The company has provided housing and health care for staff and achieved ambitious plans in the fields of rehabilitation and development. It has created institutes and centers for training, technical and administrative development. During the mid–1970s there was a decree to nationalize the Basra Oil Company (BOC) and the activities of the Erab company in Maysan. There was attachment to
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#1733202163050240-442: The field began in 2010 and since then production has risen by 35%. During 2022, the field's reported production averaged 1,421,000 barrels per day (225,900 m /d) making up around 30% of Iraq's oil production of 4.6 million barrels per day (730,000 m /d). As of 2019, about 550 production wells were operating at Rumaila. Production Facilities The field is operated by Rumaila Operating Organisation . Facilities include
260-443: The field was one of the reasons for Iraq's invasion of Kuwait in 1990 . After decades of under investment, by the early 2000s, the field was suffering not only from the natural base decline of its reservoirs, but also from ageing infrastructure and equipment, compromising production capacity, environmental protection and safety. The town of North Rumaila is called "the cemetery" by the locals. A local environmental scientist told
280-508: The first decade of the 2000s, a Technical Service Contract was signed between BOC and BP, PetroChina and the State Oil Marketing Organization (SOMO) in 2009. This detailed the establishment of ROO as the operator of the oilfield and led to the introduction of new technologies and infrastructure, training and equipment for staff, and an extensive drilling and expansion programme. In June 2022, Basra Energy Company Ltd (BECL),
300-699: The historical data and shifted the Kuwaiti border toward the north which meant that Iraq was producing from Kuwaiti territory. During the 2003 invasion of Iraq , the Iraqi Ground Forces laid an 18 km long defensive minefield across it, which contained an estimated 100,000 mines. Iraqi forces also set fire to parts of the oil field as a defensive maneuver, though these fires were later extinguished by Coalition forces. Gas, when burned openly, can produce pollutants that are linked to cancer. Iraqi law prohibits gas-burning less than 10 km from people's homes, but
320-475: The oil operation and establishment of the national oil company. The BOC was classified as the first company in Iraq and the eighth in production rating for global oil companies. The company activities covered a geographical area of 180,000 m stretching from the Persian Gulf to Hadeth. During the 1970s the maximum rate of production from the south field was 2.75 million barrels per day (437,000 m/d) and
340-499: The planned limit was 4 million barrels per day (640,000 m/d). The BOC was exposed to substantial damage during the Gulf War of 1990–1991. This reduced the production level to 2 million barrels per day (320,000 m/d) before the events of the year 2003. After the events of the year 2003, the whole of the fields, establishments and facilities of the company were damaged by vandalism, theft, arson and destruction. The destruction ratio
360-507: The surface which is considered an easy target for production. At current production rate of 1,421,000 barrels per day (225,900 m /d), the reserves-to-production ratio is just under 35 years. Rumaila oil field was critical in the 1990 Gulf War . Iraq, after accusing Kuwait of allegedly side-drilling under Iraqi soil, launched an attack on Kuwait on 2 August 1990. In addition, Kuwait had been producing quantities of oil, which were above treaty limits established by OPEC. In fact, before
380-535: The world through four marine docks. The project will add 3 million barrels per day to Iraq's export capacity. Rumaila field The Rumaila oil field is a super-giant oil field located in southern Iraq , approximately 50km to the south west of Basra City. Discovered in 1953 by the Basrah Petroleum Company (BPC), an associate company of the Iraq Petroleum Company (IPC), the field
400-449: Was 80–90% of the BOC's property. This caused production to drop to 150,000 barrels per day (24,000 m/d). By extensive and intensive reconstruction the company managed to increase production to 500,000 barrels per day (79,000 m/d) during the month of June the same year. It exported the first shipment of oil from the company's port during the same month. Thanks to the efforts of the staff,
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