Page 11 - MEOG Week 36 2021

MEOG PROJECTS & COMPANIES MEOG

More movement in Iraqi upstream

IRAQ FURTHER progress has been made towards the the Ministry of Oil stands behind the delay in oil
relaunch of Iraq’s state oil firm, while a plan has and gas investment projects.”
been drawn up to begin oil and gas activities in He added that “a co-ordination plan has been
the restive Anbar governorate. drawn up with the Ministry of Oil to present
The newly appointed board of directors of the several topics related to the oil and gas fields in
Iraq National Oil Co. (INOC) has approved the Anbar, in addition to other projects”.
firm’s bylaws, while the country’s Ministry of Oil Efforts have begun to narrow down the area
(MoO) has been instructed to transfer control of of exploration area, with Al-Tarmouz saying:
its regionally focused firms to the new company. “The first seismic squad was brought this year
Ihsan Abdul Jabbar was reported by Iraq to the Al-Qaim area, which completed part of its
Oil Report to have instructed the MoO to hand work.” The team moved last week to the Tharthar
over control of seven state-owned companies Salt Program in the area between Haditha and
to INOC – Basra Oil Co. (BOC), Midland Oil Lake Tharthar.
Co. (MOC), North Oil Co. (NOC), Dhi Qar Oil To date, the Akkas gas field is the largest asset
Co. (DQOC), Maysan Oil Co., Oil Exploration identified in Anbar. The field, which is estimated
Co. (OEC) and State Company for Oil Projects to hold a total resource of 5.6 trillion cubic feet
(SCOP). (159bn cubic metres) of gas and recoverable
Abdul Jabbar is being charged with running reserves of around 3-3.5 tcf (85-99 bcm), is
the firm in addition to his ministerial duties. located around 30 km from the Syrian border.
In August 2020, the Iraqi Cabinet amended A technical services contract (TSC) for its
the 2018 INOC legislation following objections development was awarded to a joint venture (JV)
by the Federal Supreme Court to the law, which between KOGAS and Kazakhstan’s KazMunai-
was deemed to be unconstitutional. This saw Gas (KMG) during Iraq’s 2010 licensing round,
the creation of the INOC governing board and with the partners to receive a remuneration fee of
advisory board and the conducting a valuation $5.50 per barrel of oil equivalent (boe).
of all companies to be moved from the MoO to With development costs estimated at $3bn,
INOC authority. production was anticipated reaching 400mn
INOC, which was established in 1966 but cubic feet (11.3mn cubic metres) per day, but
was incorporated into the MoO in 1986, will be progress by KOGAS and Turkish partner TPAO
a “separate corporate entity enjoying financial has been limited.
and administrative autonomy, represented by This has largely been caused by civil unrest in
the president.” the region, with Anbar a long-time stronghold of
IS until its expulsion in late 2017.
Anbar outlook Al-Tarmouz noted that the security situa-
Meanwhile, local authorities in Anbar pro- tion has now been stable since 2016, but Akkas
claimed this week that the governorate is open “has not yet been transferred to any investment
for business. company”.
Aziz Al-Tarmouz, energy affairs advisor However, MEOG reported recently that Ita-
to the governor of Anbar, told the Iraqi News ly’s Eni is believed to be in talks to work on Akkas
Agency (INA): “The environment of Anbar is gas field, with Saudi Aramco continuing to be
safe and ready for investment, but the routine in linked with collaborating on the project.™

Week 36 08•September•2021 www. NEWSBASE .com P11