Rumaila Operating Organization
| Company type | Joint venture |
|---|---|
| Industry | Oil and gas |
| Founded | 2009 |
| Headquarters | Iraq |
Area served | Rumaila oilfield, Iraq |
| Products | Crude oil production and management |
Number of employees | 7000 (direct) plus 35000 (contractors) |
| Parent | Basra Oil Company, BP, PetroChina, State Oil Marketing Organization |
Rumaila Operating Organisation (ROO) is responsible for managing the Rumaila oilfield in Iraq, one of the globe’s largest oil reserves. This enterprise is a collaboration involving Basra Oil Company (BOC), Basra Energy Company Limited (BECL), and the State Oil Marketing Organization (SOMO).
Overview
ROO was formed through a partnership of BP, PetroChina, SOMO, and BOC (previously South Oil Company) to oversee a two-decade project focused on revitalizing and expanding the Rumaila oilfield located in southern Iraq. Discovered in 1953 and producing since 1954, Rumaila is classified as a super-giant oilfield with estimated reserves near 17 billion barrels, representing roughly one-third of Iraq’s total oil production.
Situated close to the Kuwait border, Rumaila holds significant strategic value and has played a role in historic conflicts such as the 1990 Gulf War and the 2003 invasion of Iraq.
After Iraq’s 2008 decision to open its southern oilfields for competitive bidding, a Technical Service Contract was formalized in 2009 between BOC, BP, PetroChina, and SOMO to establish ROO. BECL, fully owned by BP and PetroChina, took on the role of lead contractor to manage their stakes. This agreement was extended in 2014 to continue through 2034.
ROO emphasized employing local staff while receiving technical guidance from specialists at BP and CNPC. Operations commenced in July 2010 with planned capital expenditures surpassing $15 billion through 2020 aimed at modernizing facilities, drilling additional wells, and increasing production capacity.
The initial production goal was to raise output from 1.06 million barrels per day (bpd) to 1.2 million bpd, achieved by December 2010. Production climbed beyond 1.3 million bpd by 2014 and exceeded 1.4 million bpd by January 2017—marking a growth of approximately 35% since 2010.
More than 500 wells have been drilled since operations began in 2010. Infrastructure enhancements include upgraded degassing stations, construction of new roads, pump stations, power plants, and administrative offices. Currently, the field operates around 550 active producing wells alongside approximately 150 injection wells.
Ownership is divided with BP holding a 38% share (UK-based), PetroChina owning 37% (China-based), and SOC controlling the remaining 25%. In June 2022, BECL was officially designated as the lead contractor by government approval to improve investment efficiency and facilitate access to external financing.
Under ROO’s stewardship, Rumaila has produced close to 5 billion barrels of oil, generating revenues nearing $500 billion.
The workforce includes roughly 7,000 Iraqi employees supported by over 100 technical experts from BP and PetroChina. Additionally, about 35,000 local workers are engaged through contractors throughout the operational value chain.
In April 2022, ROO announced that annual production for 2021 reached approximately 1.35 million bpd—the highest level recorded in thirty years—and celebrated surpassing a cumulative output of five billion barrels.
Philanthropy
ROO administers The Rumaila Social Welfare Fund (SWF) and the Rumaila Education Fund (REF), which provide community support including training programs, educational opportunities, healthcare services, and infrastructure development for populations living near the Rumaila oilfield.
Since 2012, ROO has collaborated with the humanitarian organization AMAR to assist vulnerable groups in southern Iraq. Their first joint initiative delivered food packages to over one thousand families during Ramadan in July 2013. ROO continues to support emergency aid efforts, health projects, and community advancement activities.