Page 5 - MEOG Week 45 2022

MEOG COMMENTARY MEOG

by the coronavirus (COVID-19) pandemic – for (INOC) that has had the greater positive impact.
OEC and CNOOC on the onshore/offshore INOC had been due to take a 40% stake in all
exploration project. four elements of the project, which targets an
This will see the Chinese firm target a increase of 125,000 bpd of oil (from the Artawi
530-square km area offshore the Al-Fao pen- oilfield), 600mn cubic feet (17mn cubic metres)
insula with OEC focusing on a connected per day of gas, 1,000 MW of solar energy and
120-square km onshore area, south-east of the 5mn bpd of water supply.
6.4bn barrel Zubair oilfield. With INOC no longer in the picture, TotalEn-
OEC director-general Ali Jassim said at the ergies is understood to feel more comfortable
time: “The plans of the Ministry and the National with the structure of the deal and a reduced
Oil Company aim to maximise the national exposure to the perceived risks of partnering
reserves of hydrocarbon wealth and invest it, with INOC.
through intertwining the national effort, and
joint work with reputable international compa- Eridu issue
nies in transforming expectations into an actual During ADIPEC in Abu Dhabi last week, Inpex
reserve added to the national production.” CEO Takayudi Ueda said that his company is
He noted that OEC and CNOOC are “pre- considering selling its 40% stake in the technical
paring to conclude a contract in the coming service contract (TSC) covering the Eridu pro-
days”, paving the way for the start of exploratory ject in Iraq’s Block 10 in Dhi Qar and Muthanna
surveys. Governorates.
The MoO is also looking to explore four large Eridu was discovered in 2016 and is esti-
areas in the south-east, described to Middle mated to contain 7bn-12bn barrels of oil. The
East Oil & Gas (MEOG) by a MoO source as: acreage is operated by Russia’s Lukoil (60%) and
Area A (between Nasiriyah and Block 10); Area the partners’ field development plan anticipates
B (between Nasiriyah and Gharraf); Area D peak production of 250,000 bpd by 2027.
(east of Nasiriyah) and Area E, which covers the Lukoil agreed preliminary terms with the
marshlands of Dhi Qar. MoO for Eridu’s development in July 2021,
targeting an initial rate of 30,000 bpd by 2024.
Megadeal update The maximum remuneration rate for Block
A deal was held this week between France’s 10, which was awarded in the fourth licensing
TotalEnergies, the Ministry of Oil’s (MoO) round, is $5.99 per barrel of oil equivalent (boe),
Reservoirs & Fields Development Directorate though these terms are also understood to be
(RFDD) and BOC. During the meeting, accord- subject to ongoing amendment discussions.
ing to the RFDD, “TotalEnergies presented a While the state-owned Dhi Qar Oil Co.
presentation on its various services in many (DQOC) suggested early this year that progress
fields, as well as a presentation on the develop- on Eridu would soon be forthcoming, Ueda said
ment of the Ratawi field, carbon storage (CCS) the project has been a “headache [and] has not
and energy development.” been progressing well.”
The recent political breakthrough in Baghdad He added that the company remains inter-
appears to have breathed new life into the broad, ested in the project and discussions with the
$27bn deal the company signed in mid-2021. It government regarding “how to proceed” are
encompasses an initial $10bn investment across ongoing, but noted that selling the stake was
oil production, the capture of associated gas, the “one option”.
belated development of a seawater supply facility Finding a buyer for such a project in Iraq is
and the installation of PV units to produce solar rarely straightforward, and is likely to be made
power. more difficult by the protracted departure
Reports suggest that while the formation of a of ExxonMobil from the West Qurna-1 TSC
new government in Iraq has been supportive, it and difficulties doing business with Russian
was the dissolution of the Iraqi National Oil Co. companies.™

Week 45 09•November•2022 www. NEWSBASE .com P5