Page 11 - MEOG Week 02 2022

MEOG PROJECTS & COMPANIES MEOG

Deal signed for gas export from PNZ

KUWAIT/SAUDI THE developers of the Wafra oilfield onshore Gulf Co-operation Co. (AGOC), for its help in
the Partitioned Neutral Zone (PNZ) between “accomplishing the high feasibility gas project”.
Kuwaiti and Saudi Arabia this week agreed to Meanwhile, in December, state media in both
export surplus gas from the asset. Kuwait and Saudi Arabia said the parties were
A memorandum of understanding (MoU) working to implement the terms of an MoU
was signed between Kuwait Gulf Oil Co. on the development of the PNZ and that work
(KGOC) and Saudi Arabian Chevron (SAC), is ongoing to ramp up output from Khafji and
which represent Kuwait Oil Co. (KOC) and Wafra.
Saudi Aramco in the Wafra Joint Operations At capacity, the fields can produce around
(WJO) area. 550,000 barrels per day (bpd); however, the fields
KGOC’s deputy CEO Muhammad Salem were shut in because of disagreements between
Al-Haimer told the state-owned Kuwait News the two governments in 2014 and then in 2015.
Agency (KUNA) that gas flows are expected to While environmental and contractual con-
begin at 12mn cubic feet (340,000 cubic metres) cerns were cited as the reasons for the lengthy
per day of gas, rising over the next five months to shut-in, Middle East Oil & Gas (MEOG) under-
40-50 mmcf (1.13-1.4mn cubic metres) per day stands that divisions within the Kuwaiti govern-
and reaching 80-100 mmcf (2.27-2.8 mcm) per ment and continuing discomfort regarding the
day within four years. key role played by Chevron in operations were
The gas will be supplied to KOC for use in the the key factors preventing a restart.
company’s gas networks. The US company’s concession for Wafra was
Meanwhile, operations began in August on renewed by Saudi Arabia without first consulting
the first pipeline from the PNZ’s al-Khafji field, Kuwait.
with 24mn cubic feet (680,000 cubic metres) of A source told S&P Global Platts: “They are
gas piped to the company’s networks in Kuwait. doing a lot of work on those to make sure the
The company reported that operating the production is sustainable from Wafra and Khafji.
conduit would “boost optimum use of the petro- They are doing the right foundations and bases
leum resources” in the PNZ while meeting “local for production, as well as infrastructure tie-ins,
needs for gas, particularly at peak consumption and investment plans being thrown around
times”. between Aramco and KGOC and Chevron.
KGOC praised its partner in the Khafji Joint There is a three-way dance on paper that is very
Operations (KJO), Aramco subsidiary Aramco good.”™

Week 02 12•January•2022 www. NEWSBASE .com P11