Page 4 - MEOG Week 42 2022

MEOG COMMENTARY MEOG

Chinese deals and

drilling updates in Iraq

The last week has seen a spate of industry updates in Iraq that bode well for

the country’s efforts to achieve its ambitious oil production capacity target.

IRAQ IRAQ this week announced the signing of two relationship between CNOOC and Iraq”. He
oil deals with Chinese companies, while its added that his company was “privileged” to sign
state drilling firm provided its latest operational with OEC the deal for the acquisition of onshore
WHAT: update. 2D seismic data and processing.
CNOOC and the local OEC Having last week finally voted in a new presi- In January, the Iraqi National Oil Co. (INOC)
have signed a deal to dent – who shortly after appointed a prime min- finally concluded a deal agreed in 2019 – delayed
collect seismic data in ister – Iraq will be hoping for a period of stability by the coronavirus (COVID-19) pandemic – for
the first part of a broad following prolonged political stasis and a recent its OEC subsidiary to collaborate with CNOOC
onshore/offshore project civil uprising. on an onshore/offshore exploration project. This
covering 650 square km. will see the Chinese firm target a 530-square
Onshore/offshore km area offshore the Al-Fao peninsula with
WHY: Together with state-owned China National OEC focusing on a connected 120-square km
As Iraq pushes forward Offshore Oil Corp. (CNOOC), Iraq’s Oil Explo- onshore area, south-east of the 6.4bn barrel
with oilfield development ration Co. (OEC) formalised the initial survey Zubair oilfield.
another Chinese firm was phase of an onshore joint study agreement, part OEC director-general Ali Jassim said at the
chosen to construct an of an onshore/offshore deal that has been several time: “The plans of the Ministry and the National
oil processing facility at years in the making. Oil Company aim to maximise the national
Rumaila. Attending the signing ceremony, Oil Minister reserves of hydrocarbon wealth and invest it,
Ihsan Abdul Jabbar reiterated Baghdad’s inten- through intertwining the national effort, and
WHAT NEXT: tion to develop offshore as well as onshore explo- joint work with reputable international compa-
More drilling work is ration blocks to maximise the country’s return nies in transforming expectations into an actual
in planning that will from its oil and gas reserves. Other Ministry of reserve added to the national production.”
support the incremental Oil (MoO) officials added that the Arab Gulf He noted that OEC and CNOOC are “pre-
expansion of various Block Joint Study Agreement (AGB JSA) was “an paring to conclude a contract in the coming
fields throughout the important step to develop the exploration block days”, paving the way for the start of exploratory
country. in the Arab Gulf and the first joint exploration surveys.
study conducted in the territorial waters”. The MoO is also looking to explore four large
Xie Wensheng, general manager of CNOOC areas in the south-east, described to Middle
Iraq, said that the deal would be “the starting East Oil & Gas (MEOG) by an MoO source as:
point for building a new type of co-operative Area A (between Nasiriyah and Block 10); Area

P4 www. NEWSBASE .com Week 42 19•October•2022