Page 5 - MEOG Week 14 2022
P. 5
MEOG COMMENTARY MEOG
production is set to increase and stabilise, which translates as ‘insane’, is one of Iraq’s largest assets,
will be of some encouragement to OPEC+, with but has so far failed to fulfil much of its potential.
much of the group’s power derived from its abil- BOC assumed operatorship of the field in
ity to flex production downwards, and to a lesser 2018 after the departure of Shell and Malaysia’s
extent, upwards, to balance the market. Petronas the previous year, with reservoir pres-
sure concerns and corruption cited as potential
Majnoon progress reasons. The two companies had signed a techni-
Production increases are key to Baghdad’s plan- cal services contract (TSC) for the field following
ning, with fields across the country being over- the second licensing round in 2009. This paid a
hauled as part of efforts to expand capacity from maximum remuneration fee of $1.39 per barrel,
the current 5mn bpd to 8mn bpd by 2027. setting an ambitious plateau production target of
To that end, an announcement posted on 1.8mn bpd, which is unlikely ever to be reached.
the MoO website last week said that two water Abdul Jabbar lauded BOC for reducing costs
treatment plants have been inaugurated with 28 associated with the field by 30% during the
production wells drilled and tied-in targeting three and a half years it has been in charge of
the Hartha, Al-Zubair, Ibn Omar and Mishrif proceedings.
formations. In July, BOC and its engineering, procure-
“All wells were connected and introduced to ment and construction management (EPCM)
the production facilities to produce sweet oil, lead on Majnoon field development, KBR,
which contributes to improve the quality of oil,” awarded a contract to UK-based Proserv Con-
the MoO said. trols to manufacture and deliver 22 wellhead
It noted that the water treatment projects control panels (WHCPs) for use in the field.
included the construction of a 12-node pipeline Each of these can control up to four wells at once
running 28 km from the Shatt al-Arab water- and BOC intends to employ the units on 70 new
way to Majnoon’s first central processing facility wells that continue to be drilled. Proserv has
(CPF1), with associated infrastructure including begun drilling the WHCPs and expects to com-
a pumping station and a filtration and treatment plete the contract by the end of Q1 2022.
unit. Majnoon is one of many fields targeted for
In late February, state-owned Iraqi Drill- a major capacity increase by the MoO, which
ing Co. (IDC) kicked off drilling at the first of is working to expand nationwide production
a 43-well drilling campaign on behalf of INOC capacity from 5mn bpd to 8mn bpd by 2027.
subsidiary Basra Oil Co. (BOC). Meanwhile, a report this week by MEES
In December by Oil Minister Ihsan Abdul suggested that the Basrah Gas Co. (BGC) has
Jabbar announced a production capacity target submitted bids for the processing of gas from
for Majnoon of 450,000 bpd, up from the current Majnoon and the nearby WQ-2, a move which
240,000 bpd. threatens to derail one of the key elements of
With reserves of nearly 13bn barrels and a broad, $27bn deal signed between France’s
far higher resources, Majnoon, whose name TotalEnergies and the MoO last year.
Week 14 06•April•2022 www. NEWSBASE .com P5
