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Rumaila oil field

Oil field in Basra, southern Iraq

  • 6 min read
  • 5 chapters

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Through Iraq, Cancer and Separation process

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 the field was one of the reasons for Iraq's invasion of Kuwait in 1990.

After decades of under investment, due to sanctions by the west, 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 the BBC in 2022 that cancer in the area was so rife it was "like the flu".

The Rumaila Operating Organisation (ROO) continues to reduce gas flaring from its operated facilities at Rumaila with a reduction of approximately 60% from 2016 to 2021.

Ownership

The field is owned by Iraq (Basra Oil Company). Following bidding rounds in 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), 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.

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