Page 11 - MEOG Week 44 2021

MEOG PROJECTS & COMPANIES MEOG

Iraq plans to sign major deals with Saudi

IRAQ/SAUDI IRAQI Oil Minister Ihsan Abdul Jabbar this In mid-2020, finance minister and then act-
week said that the government intends to sign ing oil minister Ali Allawi said that Saudi firms
billions of dollars worth of gas, renewables, water would be allowed to invest in Akkas. Momen-
and petrochemicals deals with Saudi Arabia tum appears to be building, with Abdul Jabbar
before the end of its term. speaking in February of his hopes that Aramco
Talks between the Ministry of Oil and its would take part in the field’s development and
Saudi counterpart have been ongoing since 2017, in late May, little-known Saudi firm Delta Oil
with the development of gas reserves in Iraq’s was reported to be under consideration as a
Wester Desert and the Nebras petrochemical partner in the project. The minister noted that a
project apparently key to proceedings. consortium led by US oilfield services specialist
In an interview with the Arabic language Ass- Schlumberger was in pole position to take over
abah daily, Abdul Jabbar, who is also chairman of Akkas with Baghdad planning to terminate an
the Iraqi National Oil Co. (INOC) said: “Iraq is agreement with Korea Gas Corp. (KOGAS).
negotiating with the global oil production giant The field, which is estimated to hold a total
[Saudi Aramco], to enter it as a partner in con- resource of 5.6 trillion cubic feet (159bn cubic
tracts for exploration and investment of free gas metres) of gas and recoverable reserves of
in the new fields in the Western Desert.” around 3-3.5tcf (85-99bcm), is located around
“The results of those negotiations are being 30km from the Syrian border in the in the restive
studied by experts from the two countries” ahead Western Desert.
of agreement of terms on long-term agreements A technical services contract (TSC) for its
that “satisfies aspirations and interests of both development was awarded to a joint venture (JV)
countries”. between KOGAS and Kazakhstan’s KazMunai-
He added that the MoO has kicked off 2D Gas (KMG) during Iraq’s 2010 licensing round,
and 3D seismic surveys across the provinces of with the partners to receive a remuneration fee of
Anbar and Nineveh. $5.50 per barrel of oil equivalent (boe).

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