Page 11 - MEOG Week 12 2022
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MEOG                                  PROJECTS & COMPANIES                                            MEOG


       Jordan kicks off exploration effort





        JORDAN           JORDAN’S National Petroleum Co. (NPC) last   All but Sirhan Development, Petra and Rum
                         week kicked off exploration efforts in the east-  were included in an ill-fated licensing round in
                         ern Jafr and Sirhan concessions as part of plans  2017, which was extended following a lack of
                         announced in November last year.     interest.
                           The exploration efforts were officially   Several have been extensively explored – by
                         launched during a site visit by Jordanian Min-  heavyweights of the calibre of BP and Shell, both
                         ister of Energy and Mineral Resources (MEMR)  of which withdrew during the first half of the
                         Saleh Al-Kharabsheh, who said that NPC, in col-  decade – with extensive 2D and limited 3D seis-
                         laboration with the ministry, had analysed 2D  mic surveys conducted.
                         and 3D seismic data for the area.      All the areas have been explored before to
                           He highlighted that the retesting would be  varying degrees – with the number of wells
                         carried out on the Sirhan 8 well, which had hit oil  drilled ranging from three at Sirhan to 20 in the
                         when drilled by the Natural Resources Authority  Dead Sea area, according to material on each
                         in 1989, with the aim of increasing productivity.  block published by MEMR.
                           Al-Kharabsheh said that the NPC would   Past information indicates that more than
                         carry out a drilling campaign that is expected to  half of the Dead Sea wells have yielded oil and gas
                         be concluded by the end of June.     shows, as have several of those drilled at most of
                           The minister also visited the Hamza oilfield,  the blocks. The Petra and Rum blocks are located
                         where he said that work is ongoing to assess the  in the far south-west.
                         results of a 3D seismic survey carried out by   The adjacent Azraq and Sirhan licences –
                         three international firms to provide further data  covering respectively 6,311 and 7,970 square
                         on the asset’s petroleum system.     km in the central east along the Saudi border –
                           Al-Kharabsheh noted that the ministry had  were also previously offered in a three-block bid
                         been updated on production from two wells at  round in 2014. However, with the tender coin-
                         Hamza and said that the produced oil was being  ciding with a protracted oil price crash, awards
                         transported to the 100,000 barrel per day (bpd)  were never made. Shell agreed to conduct a
                         Jordan Petroleum Refinery Co. (JPRC) facility at  nine-month study of the two blocks in 2012 but
                         Zarqa. He added that a study was ongoing for the  declined to enter a longer-term deal.
                         identification of three targets for drilling in late   The Jafr block covers 10,662 square km
                         2022 or early 2022.                  directly to  the south of  Sirhan,  while the
                           In July last year, Prime Minister and Minis-  10,841-square km Dead Sea block lies in the
                         ter of Defence Bisher Al Khasawneh formally  central west along the border with Israel, and
                         launched work for phase two of the rehabilitation  the North Highlands and West Safawi blocks are
                         project which by Q4 had increased output at the  located in the north and border Syria.
                         field from just 5 bpd to around 1,500-2,000 bpd.   Excluded from both the 2017 licensing round
                         The first phase, which was started in December  and the latest effort is the Risha block in the far
                         2020, delivered a total of 52,000 barrels of oil to  west – source of the kingdom’s only current gas
                         Zarqa refinery, which is currently undergoing  production. BP relinquished control to the gov-
                         an expansion project to increase capacity from  ernment in 2014 after five years of unproductive
                         100,000 bpd to 120,000 bpd.          exploration.
                           At the time, the head of the MEMR, Hala   A four-year production-sharing agreement
                         Zawati said that the second phase would see  (PSA) was awarded to UK-registered Egyp-
                         NPC rehabilitate existing wells to increase pro-  tian-owned company IPG in March 2016 that
                         duction, with tests already carried out to assess  also covered the East Safawi block. However, fur-
                         the output potential of two of the four wells.  ther updates have not been forthcoming and the
                           Meanwhile, Al-Kharabsheh said that the  company’s UK subsidiary was dissolved a month
                         MEMR is preparing technical information about  after the contract was signed.
                         other areas which will be provided to interna-  State-owned NPC has since been awarded
                         tional firms that have expressed interest in taking  a 50-year contract for Risha as well as PSAs for
                         part in E&P activities in the country.  East Safawi and Hamza.™
                           While other Arab nations have been outspo-
                         ken on their plans to ramp up production amid
                         global supply concerns and volatile prices, the
                         Hashemite Kingdom has struggled to gain much
                         traction with IOCs through recent unsuccessful
                         licensing efforts.
                           In April 2021, Zawati said that the Azraq,
                         Sirhan, Jafr, West Safawi, Dead Sea, North High-
                         lands, Sirhan Development, Petra and Rum
                         acreages would all be opened up for exploration,
                         though none are understood to have yet been
                         apportioned.



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