Page 11 - MEOG Week 16 2021
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MEOG TENDERS MEOG
Iraq picks Sinopec to
develop Al-Mansouriyah
IRAQ IRAQ’S Ministy of Oil (MoO) this week Following insurgency in the surrounding
announced that it had awarded a contract to area, the partners declared force majeure in
China’s Sinopec to partner with state-owned 2014 and had been in negotiations to resume
Midland Oil Co. for the development of the operations.
Al-Mansouriyah gas and condensate field. However, the contract was dissolved last year
The field is located in the subdistrict of Diyala with S&P Global Platts reporting at the time that
province, 110 km north east from Baghdad, and it had been cancelled by the MoO.
with estimated reserves of 4.6 trillion cubic feet However, a senior source within the Ministry
(130bn cubic metres) it is a key component in told Middle East Oil & Gas (MEOG) that it had
Iraq’s efforts to kickstart the buildout of its gas been “returned back to Midland Oil Co. due to
sector. the situation in the area”.
A contract to develop the field had been In either case, Baghdad began soliciting bids
awarded to an international consortium led by from IOCs to replace the TPAO consortium in
Turkey’s TPAO in 2010. The contract was held October and was said to have held talks with
by TPAO (37.5%), Kuwait Energy Co. (22.5%), Total over the asset in December.
state-owned Korea Gas Corp. (KOGAS, 15%) While the French super-major signed a mul-
and Baghdad’s representative Midland (25%). ti-billion-dollar deal covering infrastructure,
This set a plateau production target of 320mn associated gas and oil production as well as solar
cubic feet (9.1mn cubic metres) per day. energy, the contract for Al-Mansouriyah was
Security problems hampered work well awarded to Sinopec following a bidding round
before the incursion by IS militants in 2014 and held at the MoO HQ in Baghdad on April 20.
an engineering, procurement and construction Gas produced from the field will feed the
(EPC) contract tendered in 2015 on the planned nearby Mansouriyah power station and one in
100mmcf (2.8mcm) per day first phase was Baghdad and is seen easing Iraq’s reliance on Ira-
never awarded. nian gas and electricity imports.
Week 16 21•April•2021 www. NEWSBASE .com P11
