Thursday, 28 January 2010

Big Oil start making excuses

The first excuse from Big Oil for not meeting their ambitious production targets that are given to Iraq came Thursday from U.K.'s BP, backing the analysts predictions that International Oil Companies offered inflated numbers only to scoop up lucrative oil deals.

BP's Chief Executive Officer Tony Hayward, who signed himself BP's sole deal with Iraq to develop the 17.8 billion-barrel Rumaila field in Basra, put it in this simple shape:

“The challenges of execution on the ground and the need to build capability on the ground will mean that things will happen a little slower than all of us are perhaps planning on today,” Hawyard said in a discussion at the World Economic Forum in Davos, Switzerland.

“There’s no reason to believe Iraq can’t be producing 10 million barrels a day by 2020 or so,” he added.

BP and its partners China's CNPC have pledged to increase production at Rumaila from the current nearly 1 million barrels a day to 2.85 million barrels a day seven years.

Together with other nine deals awarded in two oil auctions, Iraq plans to pump about 12 million barrels a day in six to seven years that's of course is based on the IOCs pledges.