Page 8 - MEOG Week 08 2023

MEOG PRICES & PERFORMANCE MEOG

sectors over the period of the outlook, but the also highlighted the need for the transition away
greatest scope for growth is in buildings, where from hydrocarbons to be orderly, such that the
BP envisages that at least half of final energy demand for hydrocarbons falls in line with avail-
demand will be electrified by 2050 in all three able supplies, avoiding future periods of energy
scenarios. shortages and higher prices,” Dale notes.
While demand for oil and gas falls in all three This is a warning that should be heeded by
scenarios, continued investment will still be those advocating for an immediate end to new
needed to meet future demand, representing upstream investment.
a break from the position of the International “The events of the past year have served as a
Energy Agency (IEA), which stated in 2021 that reminder to us all that this transition also needs
no new oil and gas projects would be needed on to take account of the security and affordability
the path to net zero. of energy,” Dale says.
BP notes that an accelerated energy transition BP also highlights the drawback of renew-
will result in a spike in demand for critical min- ables: their intermittent supply. As such, they
erals, and this will mean a significant increase will need to be combined with baseload power
in investment in the mining sector. But there supply – ideally natural gas plants equipped with
should also be greater scrutiny about the sus- carbon-capture technology.
tainability of existing and new mining activity. Interestingly, while BP is predicting a faster
decline in oil and gas consumption, the com-
An orderly transition pany’s CEO Bernard Looney recently said he
Despite its projections, BP’s chief economist wanted to “dial back” its own green energy push,
Spencer Dale stresses that the transition from in response to lower returns from investments
hydrocarbons must be orderly to avoid future in renewables. BP said in 2020 it wanted to curb
energy price spikes and shortages. its oil and gas production by 40%, but it has now
“The scale of the economic and social dis- scaled back that target to 25%. It is also ramping
ruptions over the past year associated with the up oil and gas investments to $8bn annually by
loss of just a fraction of the world’s fossil fuels has 2030 to “meet near-term demand.”™

New unit provides output hike at Gachsaran

IRAN IRAN’S state-owned Gachsaran Oil & Gas Co. around 53bn barrels, making Gachsaran one of
(GOGC) said this week that it has achieved Iran’s, and the world’s largest deposits. However,
a 180,000-barrel per day (bpd) production as with many of Iran’s supergiants, recovery rates
increase in the field of the same name in the are an issue, though Gachsaran performs better
southwestern Kogilouyeh-Boyrahmad Province. in this regard than most of the huge assets that
The company’s CEO Mehrdad Kahkesh told comprise the West Karoun oilfield cluster.
the Ministry of Petroleum’s (MoP) Shana news A deal for the third and fourth phases of
service: “In order to prevent environmental pol- Gachsaran was agreed in early 2021 with the Ira-
lution, from the beginning of this [calendar] year nian Offshore Engineering and Construction
(which began on March 21) until now, 180,000 Co. (IOEC) which previously picked up a job on
bpd of oil [has been] added with a Mobile Oil the third phase of the Maroun oilfield.
Separator and Mobile Oil Treaters.” Meanwhile, GOGC also operates the Goreh
He added: “Oil recovery operations through pump station and oil export facilities which feed
mobile separating devices play a very important the recently built 1mn-bpd Goreh-Jask pipeline
role in reducing the amount of oil burned, pre- allowing Iran to export crude via a new terminal
venting environmental pollution, preventing outside the Strait of Hormuz.
wastage of national capital, increasing produc- The Goreh-Jask pipeline and terminal project
tion and applying more precision in making is central to Tehran’s efforts to ease reliance on
the appropriate decision for the development of Kharg island.
fields, carrying out operations in a timely man- The pipeline carries crude from the oilfields
ner and design of processing facilities suitable for in the West Karoun cluster, linking the Gulf port
the field.” city of Goreh to the Omidieh pumping station,
The Gachsaran oilfield has reserves of around then on to the Bahregan and Jask terminals for
1.1bn barrels with GOGC reportedly producing onward export.
in excess of 600,000 bpd of oil and 1bn cubic feet The wider project will include five pumping
(28mn cubic metres) per day of gas from the field stations, two pigging stations and terminals
as well as assets in Bushehr, Fars, Khuzestan and and 20 500,000-barrel tanks with a capacity of
Kogilouyeh-Boyrahmad in 2021. 10mn barrels of oil as well as offshore facilities
Oil in place (OIP) levels are thought to be for exporting crude oil.™

P8 www. NEWSBASE .com Week 08 22•February•2023