Page 8 - MEOG Week 08 2023
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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
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