Iraqi officials are preparing to cut the country’s oil output targets from 12m b/d to somewhere between 6.5m and 7m b/d, according to The Times.
The paper reports that ministers in Nouri al-Maliki’s regime argue that such a glut of supply could depress prices, and would outstrip demand. But experts have been warning for a long time that the country could never meet its initial targets anyway.
Colonel Gaddafi’s rather strange television appearance last night failed to quell the Libyan insurrection, and this morning has seen a mounting number of oil companies depart the country and the oil price continue to surge.
The news for Opec in the short term is bad, with Libya currently accounting for 1.6m barrels a day of oil production. In the long term, it could be even worse, however, especially if trouble spreads to Kuwait, with 2.3m b/d, Iran, with 3.7m, or even the big one – Saudi Arabia, with 8.3m.
While Iraq is still a difficult place to work, companies continue to persist in getting business there. On Tuesday, Halliburton announced it had been awarded a contract by Eni to provide a range of integrated energy services to help redevelop the Zubair field in southern Iraq.
No details about the value of the countract. Halliburton just said work for the “multi-million dollar contract” is underway. Halliburton is to carry out services such as perforating, acidizing and well-testing on 20 wells for Eni. Halliburton chief executive, Dave Lesar, explains in the news release why Halliburton is interested:
We are committed to providing Eni the critical services required to deliver on its goal of expanding production over the next several years. Halliburton has made a strategic investment in our Iraqi infrastructure, and the award of this contract, coupled with the recent letter of intent awarded by Shell and its partners, demonstrates that we have the technology and people in place to deliver in Iraq.
While Iraq is still a difficult place to find work, companies continue to get business.
On Tuesday, Halliburton announced it had been awarded a contract by Eni to provide a range of integrated energy services to help redevelop the Zubair field in southern Iraq.