Page 10 - MEOG Week 16 2022

MEOG PROJECTS & COMPANIES MEOG

Iraq nears decision

on Akkas award

IRAQ THE Iraqi government is seen making a decision agreements that “satisfy aspirations and interests
on the finalisation of a contract for the Akkas gas of both countries”.
field in the western Al Anbar Governorate by He added that the MoO has kicked off 2D
early May. and 3D seismic surveys across the provinces of
In an interview with Al-Forat, Oil Minister Anbar and Nineveh.
Ihsan Abdul Jabbar said that the cabinet is con- In mid-2020, Finance Minister and then
sidering reactivating a deal with US oilfield ser- acting Oil Minister Ali Allawi said that Saudi
vices specialist Halliburton that would provide firms would be allowed to invest in Akkas and in
the Ministry of Oil (MoO) with data required late May, little-known Saudi firm Delta Oil was
for a decision to be taken on whether or not to reported to be under consideration as a partner
proceed with the development of Akkas, Iraq’s in the project.
largest non-associated or ‘free’ gas deposit. Abdul Jabbar noted that a consortium led by
He said that the contract with Halliburton US oilfield services specialist Schlumberger was
would include testing that could influence the in pole position to take over Akkas, with Bagh-
naming of an operator. dad planning to terminate an agreement with
In February, Abdul Jabbar told a meeting of Korea Gas Corp. (KOGAS).
the Gas Exporting Countries Forum (GECF) The field, which is estimated to contain a
in Doha that the planned deal with Halliburton total resource of 5.6 trillion cubic feet (159bn
would cover the cost of development, poten- cubic metres) of gas and recoverable reserves of
tially alongside state-backed Saudi Aramco. The around 3-3.5 tcf (85-99 bcm), is located around
American and Saudi firms are collaborating on 30 km from the Syrian border in the restive
the development of the Jafurah gas deposit in the Western Desert.
Kingdom’s Eastern Province. A technical services contract (TSC) for its
Talks between the MoO and its Saudi coun- development was awarded to a joint venture (JV)
terpart have been ongoing since 2017, with the between KOGAS and Kazakhstan’s KazMunai-
development of gas reserves in Iraq’s Western Gas (KMG) during Iraq’s 2010 licensing round,
Desert and the Nebras petrochemical project with the partners to receive a remuneration fee of
apparently key to proceedings. $5.50 per barrel of oil equivalent (boe).
In November, Abdul Jabbar, who is also the With development costs estimated at $3bn,
head of the Iraqi National Oil Co. (INOC), said: production was anticipated reaching 400mn
“Iraq is negotiating with [Aramco] to enter it as a cubic feet (11.3mn cubic metres) per day, but
partner in contracts for exploration and invest- progress by KOGAS and Turkish partner TPAO
ment of free gas in the new fields in the West- has been limited. This has largely been caused
ern Desert. The results of those negotiations are by its location in the north-western Anbar gov-
being studied by experts from the two coun- ernorate, a long-time stronghold of IS until its
tries” ahead of settling the terms for long-term expulsion in late 2017.™

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