Iraq signed revised contracts with foreign oil companies for two southern oilfields on Thursday that reduced their production targets and extended the life of the deals, Iraqi oil officials said.
The revised deal with oil major BP for Iraq's giant Rumaila oilfield cut the planned plateau level to 2.1 million barrels per day from 2.85 million bpd.
Iraq also agreed with China's CNPC to slash the final output target from the Halfaya oilfield to 400,000 bpd from 535,000 bpd.
Iraq had set an overall production capacity target of 12 million bpd by 2020, which would rival that of top oil exporter Saudi Arabia, after it signed service contracts in 2009-2010 to develop its southern oilfields.
But crumbling infrastructure, red tape and a lack of clear oil legislation have stunted investor interest. Iraq has repeatedly failed to reach its ambitious targets, and current output from the southern fields is around 3 million bpd.
Baghdad has reduced the overall capacity target to 8.5-9 million bpd and returned to the negotiating table to discuss revised plateau production rates with oil companies.Does this really surprise anyone?