Iraq Halts Output at Key Oil Field

AMMAN -- Iraq has halted crude oil production at a key southern oil field as tribesmen prevented workers from going to work, a senior Iraqi oil official said Sunday.

"Crude oil production from Majnoon oil field has been suspended for more than four weeks," the official said by telephone from Basra. Majnoon had a daily production of 50,000 barrels a day prior to its suspension, he said.

Tribesmen wanted jobs for their sons; a demand was rejected by the oil ministry in Baghdad. Most of Iraq's oil production and exports are from southern oil fields, which produce an average of 1.9 million barrels a day. The south exports 1.5 million barrels a day from offshore oil terminals in the Persian Gulf.

Majnoon oil field has estimated total reserves in place of 12 billion barrels, making it Iraq's fourth-biggest field after Kirkuk, East Baghdad, and Rumaila North & South, the country's biggest, according to Bernstein Research.

Before the U.S.-led invasion oil giant Total SA was negotiating Majnoon and Nahr Bn Omar fields, both in southern Iraq, with the ousted Saddam Hussein's regime. No deal was signed then. Total and Chevron Corp. have recently started preparatory work on the development of the two fields, targeting a possible operational start-up in 2009.

Such operations will be possible only once the country gets an oil law in place and security on the ground improves. The controversial draft law was referred to the parliament back in July, but the country's parliament hasn't debated the document since because of big differences between the Kurds in northern Iraq and Baghdad.
WSJ

I guess all tribes aren't on the same page...