South Oil Company
Encyclopedia
South Oil Company is a national Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

i company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...

 responsible for the oil in the south of Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

. It is situated in Basrah, Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

. South oil company is one of the major fundamental formations of the Iraq National Oil Company
Iraq National Oil Company
The Iraq National Oil Company was founded in 1966 by the Iraqi government. It was empowered to operate all aspects of the oil industry in Iraq except for refining which was already being run by the Oil Refineries Administration and local distribution which was also already under government...

 (INOC). It was the first nucleus and the basis of national direct investment projects in the 1970s, where the SOC was subsidiary to the national company.

Development

Events and activities have escalated steadily and rapidly, rising since the beginning of the 1970s. Investment and development stages of the north Rumaila field
Rumaila Field
The Rumaila oil field is a giant oil field located in southern Iraq, approximately from the Kuwaiti border. The dispute between Iraq and Kuwait over allegedly slant-drilling in the field was one of reasons for Iraq's invasion of Kuwait in 1990. This field was discovered by British Petroleum in...

 were completed in three stages, leading to a rate of production of 42 million tons per year and this coincided with the expansion of works in all fields.

The expansion began with drilling works, building and expanding production facilities, and implementing investment projects associated with natural gas fields in north and south Rumaila. Also developing new fields in Luhais, Saba, Nuhran Ben Ummer and oil fields in Maysan. Laying out an exporting pipe line, expanding export facilities and infrastructure sites for the comp.

Provision for staff

The company has provided housing and health care for staff and achieved ambitious plans in the fields of rehabilitation and development. It has created institutes and centers for training, technical and administrative development.

Nationalization

During the mid–1970s there was a decree to nationalize
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 the Basra oil company (BPC) and the activities of the Erab company in Maysan. There was attachment to the oil operation and establishment of the national oil company.

The SOC was classified as the first company in Iraq and the eighth in production rating for global oil companies. The company activities covered a geographical area of 180,000 m² stretching from the Arabic Gulf to Hadeth. During the 1970s the maximum rate of production from the south field was 2.75 Moilbbl/d and the planned limit was 4 Moilbbl/d.

War damage

The SOC was exposed to substantial damage during the war (1991). This reduced the production level to 2 Moilbbl/d before the events of the year 2003. After the events of the year 2003 the whole of the fields, establishments and facilities of the company were damaged by vandalism, theft, arson and destruction. The destruction ratio was 80-90% of the SOC's property. This caused production to drop to 150000 oilbbl/d.

Reconstruction

By extensive and intensive reconstruction the company managed to increase production to 500000 oilbbl/d during the month of June the same year. It exported the first shipment of oil from the company's port during the same month. Thanks to the efforts of the staff, the company was able to restore production to 2.15 Moilbbl/d during the first quarter of the year 2004.

See also

  • Iraq oil law (2007)
    Iraq oil law (2007)
    The Iraq oil law, also referred to as the Iraq hydrocarbon law, is a proposed piece of legislation submitted to the Iraqi Council of Representatives in May 2007.The Iraqi government has yet to reach an agreement on the law...

  • North Oil Company
    North Oil Company
    North Oil Company is situated in Kirkuk, Iraq.The North Oil Company is one of the 16 companies comprising the Iraqi Ministry of Oil. Headquartered in Kirkuk, its boundaries extend from the northern borders to the 32.5 degree parallel, just south of Baghdad....

  • Oil megaprojects
    Oil megaprojects
    -Megaprojects predicted for individual years:-New supply addition per country from oil megaprojects:Volumes shown are in thousand barrels per day. The summary table below is produced by a Perl script parsing each annual table...

  • Oil megaprojects (2010)
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