Page 4 - MEOG Week 01 2023

MEOG COMMENTARY MEOG

Iraq keeps drilling as plans

firm up to expand exports

Iraqi state firms are finally pushing forward with the expansion of the East
Baghdad oilfield as plans appear to be materialising to add to export capabilities

IRAQ IRAQ is carrying its well drilling momentum a capacity of 1,500 horsepower”, noting that it is
into the new year, with the announcement in late one of the company’s most modern units.
December of a campaign to drill 27 wells at the EBS is understood to be working to ramp up
WHAT: giant East Baghdad oilfield. output to a target of 50,000 bpd from the 8bn
IDC has begun a 27-well The same day, the state-owned Basra Oil Co. barrel field, which is one of many assets where
drilling campaign at East (BOC) outlined plans to add new export lines Iraq is looking to raise capacity as part of a state
Baghdad after years of at the Khor al-Amaya Oil Terminal (KAAOT) effort to achieve 7mn bpd by 2027 from the cur-
the field underperforming in the Gulf. rent level of just under 5mn bpd, with IDC lead-
its massive potential. Progress on both projects is long overdue ing the drilling push.
and they look to be benefitting from Baghdad’s The East Baghdad concession was offered
WHY: apparent determination to ramp up oil produc- for development by IOCs during Iraq’s second
The asset has been tion while expanding its export capabilities. licensing round in December 2009, but received
producing at around no bids, prompting Baghdad to proceed alone
20% of its target and is East Baghdad boost to rehabilitate and raise production at the field.
the next in line to benefit On December 29, the Iraqi Drilling Co. (IDC) While operated by North Oil Co. (NOC) it
from Iraq’s output push. said it had begun work on drilling the wells in was among the central fields brought under the
the south of the field, which lies to the east of the development auspices of the Midland Oil Co.
WHAT NEXT: capital city. (MOC) on its creation in 2010, alongside other
As production expands, In an Arabic language press release, the com- fields in the provinces of Anbar, Babil, Diyala,
Baghdad is working pany said that “the technical and engineering Diwaniyah, Karbala and Wasit.
to raise its expansion staff of the Iraqi Drilling Company began drill- Despite estimated output potential of 400,000
capacity too, through ing the first oil well within a project to drill 27 oil bpd, current production stands well below this
plans to add lines at a wells in the eastern field of southern Baghdad for largely because most of the field lies under or
southern port. the benefit of the Chinese company EBS [Petro- close to residential areas of the capital, including
leum] in co-operation with COSL to provide oil the volatile Shia neighbourhood of Sadr City.
services.” Output, which began in 1989, feeds the ageing
EBS – a local Iraqi affiliate of China ZhenHua Daura refinery serving the capital.
Oil Co. Ltd, itself a subsidiary of the state-owned East Baghdad was one of two giant fields that
China North Industries Group (Norinco) – is Baghdad declared in 2010 would be developed
involved in the development of the 10,000 barrel by the government rather than IOCs, the other
per day East Baghdad asset as well as the 130,000 being Kirkuk – also sensitive, since it lies partly
bpd Ahdab field. in federally controlled territory and partly in the
IDC said that drilling operations are being autonomous area run by the Kurdistan Regional
carried out “using the IDC 36 drilling rig with Government (KRG).

P4 www. NEWSBASE .com Week 01 04•January•2023