Page 15 - MEOG Week 44 2021

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POLICY OIL billions of dollars to fund, but the cost will
be justified by the strategic and economic
Baghdad pays Kuwait Time to revive Saudi-Oman benefits.”
In his interview with Asharq al Awsat,
another $490mn in war oil pipeline to the Arabian H E Saqri added that the opening of a road
between Oman and Saudi Arabia will facilitate
reparations Sea work on connecting the city of Duqm and the
city of NEOM in Saudi Arabia. “The road will
Kuwait has received additional reparations of A Saudi-Omani oil pipeline to the Arabian open the way for Saudi goods to reach Omani
almost $500 million for Iraq’s 1990 invasion, Sea is of paramount strategic significance as it ports faster. Both countries will benefit from
the Iraqi embassy in Kuwait said. will provide an alternative route for Saudi oil the existing facilities of each other, such as
“Iraq on October 26 paid Kuwait $490 shipments to reduce dependence on the Strait industrial and free zones, and the possibility
million, and it will work to pay off what is of Hormuz, according to H E Dr Said bin of establishing new economic areas on the
left in reparations due for the year of 2022, Mohammed al Saqri, Minister of Economy. border,” he said.
approximately $629 million,” the embassy said In an interview with Asharq al Awsat He noted that the volume of trade and
in a statement issued on Monday. newspaper in Saudi Arabia, H E Saqri said, “It investment exchange between the two
Baghdad has paid around $50 billion in is time to start transporting Saudi oil through countries will increase through joint strategic
reparations over the last three decades. the Arabian Sea via Oman. The idea of a projects and mutual investments in various
Iraqi forces under then-dictator Saddam project to construct an oil pipeline across the sectors, especially after the opening of the new
Hussein invaded oil-rich Kuwait on August 2, sultanate to the Arabian Sea has existed since Saudi-Oman road.
1990, sparking international condemnation. the 1970s.” “There is cooperation and ongoing joint
They occupied the Gulf state for seven months He also stated that Oman and Saudi Arabia meetings between Oman and Saudi Arabia
before they were pushed out by a US-led recently signed several agreements to increase to discuss investment opportunities and
international coalition in the first Gulf War investments between the two countries. prospects for integration in the special
early in 1991. “Therefore, the project’s implementation has economic zones, such as the establishment
In 2018, Baghdad paid the first war become of strategic importance.” of an industrial zone in the sultanate. Saudi
reparations to Kuwait since 2014, when there Endorsing the importance of the project, Arabia will develop, operate and manage the
was a pause in payments due to a security Faisal Faeq, an energy sector adviser who zone,” H E Saqri informed.
crisis in Iraq where the Islamic State group of has worked with Saudi Aramco and OPEC MUSCAT DAILY
jihadists took over large areas of the country. Secretariat, recently wrote in Arab News: “An
But it had asked for an extension for oil pipeline from Saudi Arabia to the Arabian NISOC reserves’ value up
the final $3.8 billion because of its worst Sea via Oman would reduce the region’s
fiscal crisis in years during the coronavirus dependence on the Strait of Hormuz, which is $115bn
pandemic that brought a collapse in oil prices. currently the main artery for the majority of
While Kuwait and Iraq now have civil oil and gas exports from the Arabian Gulf.” National Iranian South Oil Co. (NISOC)
relations, issues remain over borders and the In Faeq’s estimation, the economic benefits supplies over 80% of Iran’s crude oil and
repatriation of bodies. would include savings for oil tankers, in terms 16% of natural gas. As the largest subsidiary
AFP of both journey time and the cost of freight of National Iranian Oil Company (NIOC),
and insurance. “Such a project would require NISOC runs 45 fields and 65 reservoirs
covering 70,000 square kilometers stretching
from Bushehr to Khuzestan provinces. Giant
oil fields like Ahvaz, Gachsaran, Maroun,
Aghajari, Karanj, Parsi and Bibi Hakimieh are
among them.
Ahmad Mohammadi, the former CEO
of NISOC, has said based on expert studies’
findings, the reserves owned by NISOC have
increased $115 billion in value.
He said: “The expert studies conducted
over the past two years show that Ramshir
Asmari, Kupal Asmari, Kupal Bangestan,
Mansouri Bangestan, Nargesi Asmari/Jahrom
and Qale-Nar/Asmari are estimated to have
9 billion barrels of oil in place more than
estimated before. That means 1.65 billion
barrels of oil would be added to NISOC’s
recoverable reserves.”
With an oil barrel hovering around $70,
the newly discovered reserves are valued at
$115 billion.
This volume added to NISOC’s reserves
in place are not inclusive of the expected

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