The Halfaya project consists of three phases. The first phase of the project became operational in June 2012, and is now producing at a daily rate of 100,000 bbl of crude and 2.6 million m³ of natural gas.
The second phase project, including 60 wells, a 272 km pipeline, and a 5 Mt/a crude processing centre, is expected to be operational in the second quarter of 2014 and capable of outputting 200,000 bbl/d of crude oil.
The third phase project, with a productivity target of 600,000 bbl/d, is expected to be completed by the end of 2016.
Iraqi’s Prime Minister Nouri al-Maliki and his government’s Oil Minister Abdul Karim Luaibi attended the ground-breaking ceremony, and cut the ribbons for the debut of the operation control centre at the Halfaya oilfield. They also visited the oil and gas processing center of the first phase project and turned on the valve to feed gas to the Kahla power plant, which is going to be the first one in Iraq that generates electricity by burning associated natural gas.
Background
The Halfaya project is CNPC’s largest overseas investment unit for which it also acts as the operator. Located in Maysan Province in southeast Iraq, Halfaya oilfield is one of the country’s seven giant oilfields. On 11 December, 2009, a consortium consisting of CNPC’s PetroChina, Total, and Petronas won the bidding in a tender for the Halfaya oilfield project, with CNPC as the operator. On 27 January, 2010, the consortium signed a 20-year oil production agreement with Iraq’s South Oil Co, which took effect on 1 March, 2010. The first phase of the Halfaya oilfield project started on 20 September, 2010.