Page 14 - MEOG Annual Review 2021

MEOG JUNE MEOG

Iraq continues to court

Saudi investments

Iraq held more talks with Saudi Arabia about getting the Kingdom’s energy majors
involved in developing gas and petrochemical projects that will ease reliance on Iran.

IRAQ THE oil ministers of Iraq and Saudi Arabia met Jabbar speaking in February of his hopes that
virtually this week to discuss energy sector col- Aramco would take part in the field’s develop-
laboration, continuing talks that began in 2017. ment, and in late May, little-known Saudi firm
WHAT: In a statement on July 7, Iraqi Oil Minister Delta Oil was reported to be under consideration
A meeting was held last Ihsan Abdul Jabbar said that Saudi companies as a partner in the project. The minister noted
week between the two were keen to invest in Iraqi projects in gas, pet- that a consortium led by US oilfield services spe-
energy ministries as well rochemicals and clean energy. cialist Schlumberger was in pole position to take
as Saudi Aramco, SABIC Central to the discussions was the develop- over Akkas, with Baghdad planning to terminate
and ACWA Power. ment of two of Iraq’s key gas fields, Akkas and an agreement with Korea Gas Corp. (KOGAS).
Ratawi, which will play a major role in facilitat- The field, which is estimated to hold a total
WHY: ing Baghdad’s self-reliance in gas production, resource of 5.6 trillion cubic feet (159bn cubic
Iraq has been courting allowing it to end Iranian imports. Increased gas metres) of gas and recoverable reserves of
Saudi energy firms availability will also be a key factor in the success around 3-3.5 tcf (85-99 bcm), is located around
since 2017 on projects of the planned Nebras petrochemical project, 30 km from the Syrian border in the restive
that have struggled to which was also reported to have piqued Saudi Western Desert.
accelerate. interest. A technical services contract (TSC) for its
The meeting between Abdul Jabbar and his development was awarded to a joint venture (JV)
WHAT NEXT: counterpart, Prince Abdulaziz bin Salman, between KOGAS and Kazakhstan’s KazMunai-
A definitive agreement was also attended by representatives of state- Gas (KMG) during Iraq’s 2010 licensing round,
has been hard to achieve, owned Saudi Aramco, Saudi Basic Industries with the partners to receive a remuneration fee of
though Baghdad is Corp. (SABIC), in which Aramco holds a 70% $5.50 per barrel of oil equivalent (boe).
hopeful one will be stake, and utility major ACWA Power on the With development costs estimated at $3bn,
forthcoming. Saudi side, and Iraq’s electricity company offi- production was anticipated reaching 400mn
cials and the head of the National Investment cubic feet (11.3mn cubic metres) per day, but
Commission. progress by KOGAS and Turkish partner TPAO
has been limited. This has largely been caused
Akkas by its location in the north-western Anbar gov-
Iraq’s Deputy Minister of Oil for Gas Affairs, Dr. ernorate, a long-time stronghold of IS until its
Hamid al-Zawbai, said last year that the govern- expulsion in late 2017.
ment had been in talks with Aramco and SABIC
for Akkas and the planned Nebras petrochemi- Ratawi
cal complex respectively since December 2017. Ratawi, which is also known as Artawi, was
Just over a year ago, Finance Minister and included in a broad heads of agreement (HoA) in
then Acting Oil Minister Ali Allawi said that March between Baghdad and French super-ma-
Saudi firms would be allowed to invest in Akkas. jor TotalEnergies.
Momentum appears to be building, with Abdul The estimated $7bn deal would see the IOC

P14 www. NEWSBASE .com Annual Review •2021