Page 10 - MEOG Week 04 2022

MEOG PROJECTS & COMPANIES MEOG

Contract awarded as Iraq

eyes Faihaa expansion

IRAQ THE operators of south-eastern Iraq’s Faihaa and CNOOC Petrochemical Engineering Co.
oilfield this week awarded a contract to two Chi- (CNOOC Petrochemical). CAMCE said the
nese firms for the construction of a facility to contract would run for 33 months from January
process crude oil from the asset as the developers 2022.
move ahead with the field’s expansion. Speaking during the ceremony, UEG chief
During a ceremony to award the contract for operating officer Song Yu said that the lay-
the plant, Ihsan Abdul Jabbar, Oil Minister and ing of the facility’s foundation marked an
president of the Iraqi National Oil Co. (INOC), “important moment” and noted that the com-
emphasised both the company and the minis- pany was reviewing plans for the field’s future
try’s “keenness to implement its plans to imple- development.
ment projects to develop” exploration areas as According to data from consultancy IGM
the country seeks to ramp up oil production. Energy, Faihaa was producing at around 40,600
He noted that Faihaa, located in Block 9, is bpd in November 2021.
one of such developments, adding that the field’s The UEG official was accompanied on a
expansion phase aims to raise output to 100,000 tour of the field by INOC second deputy Laith
barrels per day (bpd) of light crude and another Al-Shaher, director-general of INOC subsidiary
135 barrels of oil equivalent (boe) of gas, with Basra Oil Co. (BOC) Khaled Hamza and several
the latter to feed power plants for electricity other ministry and state oil company officials.
production. Hamza pointed to the importance of develop-
Faihaa was discovered by Kuwait Energy ing Faihaa because of its complex reservoir.
Co. (KEC, 70%) and Dubai-based Dragon Oil UEG estimates that Block 9 holds combined
(30%) at the Faihaa-1 well in 2014. KEC has since 2P reserves and 2C resource in excess of 2.5bn
been acquired by China’s United Energy Group boe that will be produced from the Yamama and
(UEG), with Dragon now part of the Emirates Mishrif layers, as with other large deposits in
National Oil Co. (ENOC). south-eastern Iraq.
The firms secured the development contract A company presentation in September 2017
for the site in May 2012, during the fourth round outlined the potential to achieve gross pro-
of bidding for a range of sites with combined duction from the field of 250,000 bpd by 2025.
proven reserves of more than 60bn barrels. While this appears unlikely to be attained, UEG
KEC awarded a $594mn contract for engi- like other operators will be encouraged by Bagh-
neering, procurement and construction (EPC) dad to ramp up as quickly as possible as it seeks
work on the 100,000 bpd facility to a consortium to add 3mn bpd to its current 5mn bpd output
of China CAMC Engineering Co (CAMCE) capacity by 2027.™

P10 www. NEWSBASE .com Week 04 26•January•2022