100,000 bpd goal: China's EPS expands Baghdad oilfield

Shafaq News/ On Wednesday, Iraq’s Oil Ministry signed a revised development contract with China’s Zhongman Petroleum and Natural Gas Group (EPS) to expand operations at the East Baghdad oilfield, with plans to boost output and upgrade key infrastructure.

According to the ministry's statement, the production capacity is expected to reach 100,000 barrels per day, nearly doubling the current output of 45,000 to 50,000 barrels. This increase is driven by the drilling of six new wells using horizontal and directional techniques.

The contract also broadens the project’s geographic scope, including the construction of four crude oil storage tanks, two with a capacity of 10,000 cubic metres each, and two with 3,000 cubic metres.

Moreover, EPS is expected to carry out six infrastructure projects on behalf of the state-run Midland Oil Company. These include the installation of a mobile air purification unit equipped with a pollution analysis lab, and the development of a wastewater treatment system to manage drilling waste.

Midland Oil Company Director General Mohammed Yassin Hassan described the deal as part of the ministry’s broader plan to make the ‘’most efficient use’’ of Iraq’s energy resources. He also noted that the environmental and technical components of the contract reflect a commitment to sustainable development in tandem with production growth.

Earlier this year, Midland Oil and EPS announced a major oil discovery in the same field. Preliminary tests from an exploratory well showed a daily output of 5,000 barrels of medium and light crude. Estimated reserves exceeded 2 billion barrels, marking the largest oil find in central Iraq to date.

Iraq holds the world’s fifth-largest proven oil reserves and is a founding member of the Organization of the Petroleum Exporting Countries (OPEC).