Page 10 - MEOG Week 46 2022

MEOG PROJECTS & COMPANIES MEOG

Iran and Iraq set to begin

development of Sohrab oilfield

IRAN A start on a $1bn Iranian-Iraqi project to develop gas fields in Iran in a first for the country’s hydro-
a key oil field, Sohrab, is imminent, according to carbon industry, according to secretary general
the CEO of the National Iranian Oil Company of the Iranian Petrochemical Industry Employ-
(NIOC) Mohsen Khojastehmehr, as reported by ers Association Ahmad Mahdavi Abhari, as cited
official energy news agency Shana. by local media.
In February, NIOC awarded an $800mn “With the formation of the first consortium
contract to Iranian contractor Dana Energy to of petrochemical companies to operate in the
develop the Sohrab field, located in the south- upstream sector, work has begun on the three
western Iranian province of Khuzestan. The gas fields of Khartang, Gardhan, and Pazen,”
field is believed to contain around 2bn barrels of Mahdavi was reported as saying by Tasnim news
crude oil, according to Iranian estimates. NIOC agency and other press.
data shows that the field shares a reservoir with Weighing up the importance of the petro-
Iraq’s Huwayza field, which also, according to chemical industry to Iran’s economy, he added:
estimates, contains around 1bn barrels of oil. “From the beginning of the current [Persian]
However, total production at the field over calendar year [on March 21] until November
the 20 years of the contract with Dana Energy 8, around $9.4 billion were injected into NIMA
will be around 160mn barrels. [the Iranian state’s forex management integrated
Development of the Huwayza oil field began system) by petrochemical companies.”
in 2017. At that point Iran was not in the pic- The Tehran Times reported on November 16
ture, with the Iraqis working with other foreign that Iran’s petrochemical export earnings rose
counterparts. 13% y/y in the first seven months of the cur-
rent Persian year (March 21-October 22), sec-
Downstream going upstream retary-general of Iran’s Petrochemical Industry
Meanwhile, a consortium of Iranian petrochem- Employers Association announced. It reported
ical firms has commenced operations to develop Abhari as providing the figure.™

KPC urged to reduce spending

KUWAIT KUWAIT’S State Audit Bureau (SAB) has rec- 1981-1982 until the fiscal year ending on March
ommended that the state oil firm should ration- 31, 2022, amounted to KWD4.6mn ($14.9mn).
alise its spending and avoid exposure to the This is a procedure outside the special decree
risk of default in the payment of its obligations regarding the financial bases related to the mar-
towards lending banks and credit agencies. The keting of Kuwaiti crude oil and gas belonging to
local Al-Qabas daily quoted the SAB as saying the state by KPC issued on January 1, 1981 and
Kuwait Petroleum Corp. (KPC) should also regulating the accounting transaction between
negotiate with borrowers to reschedule their KPC and the State of Kuwait.
dues. KPC’s investments vary between highly liq-
In a report prepared by the National Assem- uid investments, financial portfolios, subsidiar-
bly on the financial situation of KPC and its ies and associate companies, and depend on a set
subsidiaries, SAB explained that the value of of approved controls and procedures and what is
financial assets at fair value during the financial stipulated in the regulations and decisions issued
years under study (2018-2022) had decreased. in this regard and the direct powers granted to
It explained that the total loans of KPC and the Financial Investment Committee.
its subsidiaries in the fiscal year ending in March The fund’s invested balances for the foun-
2022 amounted to KWD5mn ($16.2mn), which dation on March 31 amounted to KWD15mn
is an increase of 63% on what it was in the fis- ($48.7mn), representing 29.6% of the total assets
cal year that ended in March 2018; over that on the same date.
period the value of bank balances decreased by SAB touched on the decrease in the value of
14.7%. The interests of the recovered financing, financial assets at fair value during the financial
with which KPC is compensated in return for years under study to reach a value of KWD4.3mn
investing its funds in the activity of exploration ($14mn) on March 31, 2022, due to the with-
and production of crude oil and natural gas drawal of sums from the minister’s portfolio to
within the State of Kuwait since the fiscal year meet the needs of KPC and its subsidiaries.™

P10 www. NEWSBASE .com Week 46 16•November•2022