Gulf Keystone Petroleum is preparing to invite bids for a second drilling rig at its operations in the Kurdistan region of Iraq.
Jon Harris, CEO of the Bermuda-based oil and gas exploration company, confirmed the plans as part of a drive to ramp up production in the Shaikan field area of the country.
“We are extending some contracts and are going out to bid for a range of items,” said Harris.
Gulf Keystone is tendering oil field equipment, including downhole equipment, trees, tubular casing, and water handling units.
The company had recently submitted its field development plan to Iraqi Kurdistan’s Ministry of Natural Resources and is currently waiting for approval.
Harris added that the company is also expanding the existing processing facilities, which include installing water and salt handling units to remove impurities from the produced oil.
He said: “We produce a very small amount of water, and when the oil is processed and heated, the water evaporates, leaving salt in the oil.
“The new units will wash out that salt so that the oil can be sold to buyers.
“We are in the process of tendering for these water washing and salt handling units at the moment.”