Oryx Petroleum to start production at new facility in Iraq

Oryx Petroleum to start production at new facility in Iraq Oryx Petroleum announced it has successfully tested and commissioned its production facilities in the Demir Dagh field in the Kurdistan region of Iraq, according to an official company statement. The plant is in the Hawler license area where Oryx Petroleum has a 65 percent working interest and is the operator.

The facility will begin operations with an initial production capacity of about 5,000 barrels per day from the Demir Dagh-2 well and will increase to 40,000 bpd by 2015, according to Oryx Petroleum. The initial storage capacity is 25,000 bpd and oil storage is waiting for the first sales. The truck loading station can handle 20,000 bpd.

Oryx Petroleum expects sales to commence soon and has agreed to sell crude oil to third-party marketer designated by the Ministry of Natural Resources of the Kurdistan Regional Government. The oil will be sold at a price below $60 per barrel.

The facility will be connected to the Khurmala-Faysh Khabur export pipeline by approximately 3,900 feet of 16 inch pipeline, which should be completed in 2014.

More information on oil and gas in Iraq can be found at PennEnergy's Research Area.

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