Page 5 - MEOG Week 08 2023

MEOG COMMENTARY MEOG

have plagued the onshore are unlikely to dissi- with their maritime borders and considering the
pate in the Arabian Gulf. waters of Al-Faw as part of the Kuwaiti baseline.”
He urged Iraq to develop “a map of the terri-
Iraq torial sea and the economic zone at the United
Meanwhile, last November, Iraq’s Oil Explora- Nations and to enter into negotiations with
tion Co. (OEC) and China National Offshore neighbouring maritime countries to guarantee
Oil Corp. (CNOOC) kicked off the initial survey its sovereign rights over this part of the sea that is
phase of an onshore joint study agreement, part restricted by the rules of international law.”
of an onshore/offshore deal that has been several Meanwhile, Iraqi government representative
years in the making. Amer Abdul-Jabbar Ismail recently highlighted
The Arab Gulf Block Joint Study Agreement “Kuwaiti transgressions on Iraqi territorial
(AGB JSA) survey marks Iraq’s first offshore sur- waters through the presence of a Kuwaiti off-
vey and comes as the country seeks to expand its shore oil platform 5 nautical miles [9.3km] from
reserve base and the market awaits the results of Khor Al-Khafga and 18 nautical miles [33.3km]
a reserve audit. from the Basra oil port, which is an infringement
Speaking to the local Al Sabah newspaper on Iraq’s territorial sovereignty.”
and the Iraqi News Agency (INA), OEC direc- In January, the Iraqi National Oil Co. (INOC)
tor Ali Jassim said that CNOOC “has started finally concluded a deal agreed in 2019 – delayed
its work in implementing a joint study contract by the coronavirus (COVID-19) pandemic – for
for 2-D seismic survey and geophysical surveys OEC and CNOOC on the onshore/offshore
to explore hydrocarbon gatherings in the Iraqi exploration project. This will see the Chinese
marine patch in the north of the Arabian Gulf.” firm target a 530-square km area offshore the
He added: “There is an urgent government Al-Fao peninsula with OEC focusing on a con-
desire to invest and increase national reserves nected 120-square km onshore area, south-east
to keep pace with the needs of the markets, of the 6.4bn barrel Zubair oilfield.
according to expectations of finding the targeted OEC director-general Ali Jassim said at the
commercial quantities, similar to the riparian time: “The plans of the Ministry and the National
countries with Iraq.” Oil Company aim to maximise the national
Jassim noted that “the most important stage reserves of hydrocarbon wealth and invest it,
includes cleaning and removing war remnants – through intertwining the national effort, and
projectiles and mines – a from the land surface”, joint work with reputable international compa-
which OEC is carrying out in co-ordination with nies in transforming expectations into an actual
the Ministry of Defense, the Regional Center for reserve added to the national production.”
Mine Affairs in the Ministry of Environment He noted that OEC and CNOOC are “pre-
and Basra Oil Co. (BOC). Meanwhile, CNOOC paring to conclude a contract in the coming
is expected to launch a tender for qualified com- days”, paving the way for the start of exploratory
panies to bid to clean and remediate the marine surveys.
area. The MoO is also looking to explore four large
Mines are not the only area of concern, with areas in the south-east, described to Middle
ongoing disputes around Iraq’s maritime bound- East Oil & Gas (MEOG) by an MoO source as:
ary. Local maritime affairs expert Salah Al-Basri Area A (between Nasiriyah and Block 10); Area
told INA: “The State of Kuwait still has a prob- B (between Nasiriyah and Gharraf); Area D
lem with the base line with Iraq, because of their (east of Nasiriyah) and Area E, which covers the
objection to drawing this line and interfering marshlands of Dhi Qar.™

Week 08 22•February•2023 www. NEWSBASE .com P5