Question
The Rumaila is an oil field located in southern Iraq, approximately 32 km from the Kuwaiti border. Discovered in 1953 by the Basrah Petroleum Company
The Rumaila is an oil field located in southern Iraq, approximately 32 km from the Kuwaiti border. Discovered in 1953 by the Basrah Petroleum Company (BPC), an associate company of the Iraq Petroleum Company (IC), the field is estimated to contain 12 billion barrels, which accounts for 12% of Iraq's oil reserves estimated at 143.1 billion barrels. Rumaila oil field is said
to be the largest oilfield ever discovered in Irag and is considered the third largest oil field in the world.
The field is owned by Iraq and subcontracted to BP and CNPC under Iraq Producing Field
Technical Service Contract (PFTSC). BP is an operator of the project with 47.6% while CNPC and State Oil Marketing Organization (SOMO) holds 46.4% and 6%, respectively. BP and CNPC will recover a renumerated fee of $2 per barrel in profits which will account to 15 to 20% rate of return on investment. Iraqi government and BP agreed to cut the initial bidding price per barrel from $3.99 to $2.00 in June 2009. The US changed its status of forces agreement the same month, starting to depart from Iraq.
ExxonMobil which also bid on servicing this field at a price $4.80 walked away due to price cutting terms by the Iraqi Government leaving BP and CNPC as winners of the contract. BP expects the costs will begin to be recovered after the production will be raised by 10% from the current output. The rehabilitation and expansion project will be managed by Rumaila Field Operating Organization (ROO) which will be staffed mainly from PETROFAC employees, a wide range of international oilfield service providers, and smaller number of experts from BP and CNPC.
An estimated $15 billion will be spent on enhancing the operations at Rumaila over the next 20 years. As a petroleum engineer, you are required to interpret the study of source rocks, migrated petroleum, oils and condensates from the Rumaila oilfield.
- Interpret the importance of Earth structure of structure of the Earth in a petroleum system using the principles of science and engineering learnt in the class.
- Sketch the structure and composition of the Earth with the sustainability of the petroleum system in the Rumaila oilfield using the principles of science and engineering learnt in the class.
- Interpret the relationship of Earth structure with the petroleum system in the Rumaila oilfield. When performing the research, followings must be included:
- Historic background of the petroleum geochemistry in the Rumaila.
- Structure and composition of the Earth with the Rumaila.
- Variations in petroleum composition.
- Formation of petroleum in the Rumaila.
- Organic matter in sediments.
- Conversion of organic matter into petroleum beneath the basin.
- Produce the summary of the Rumaila oilfield using the principles of science and engineering learnt.
- Show your analysis in a 10-15-minute presentation for the complex engineering problem.
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