Page 4 - MEOG Week 10 2023

MEOG COMMENTARY MEOG

Iraq remains hopeful of Eridu

plans despite uncertainty

Iraq this week declared the commerciality of its Eridu oilfield, reiterating

plans to press forward with development despite some unanswered questions

IRAQ IRAQ’S Minister of Oil, Hayan Abdulghani, this South Oil Co. in 2012. Eridu is spread across the
week belatedly announced the commerciality of Muthana and Dhi Qar governorates, around 150
the Eridu oilfield in Block 10, reiterating plans km west of Basra.
WHAT: for its phased development. Lukoil submitted its development plan for the
Eridu was discovered Abdulghani said in a speech during a cere- field and applied in November 2021 to DQOC
in 2016, with Lukoil mony to commemorate the commerciality that “for commerciality of reserves and filed a prelim-
and Inpex having development of Eridu, “which is considered inary proposal on the development of the Eridu
carried out an appraisal one of the [country’s] promising projects, is of oilfield within Block 10,” according to the MoO.
before submitting field [national] importance” as the Ministry of Oil Eridu was discovered in 2016 and studies sug-
development plans in late (MoO) looks to push it towards the production gested it could contain 7bn-12bn barrels, with
2021. phase. Abdulghani’s latest figure 7.5% higher than the
He added: “Expectations indicate the size top end. Lukoil holds 60% in the field’s technical
WHY: of the oil reserves of the field, especially the services contract (TSC) in which it is partnered
Commerciality Musharraf reservoir, which includes oil reserves by Japan’s Inpex Corp., which has the remainder.
was expected to be amounting to more than 12.9bn barrels.” The field development plan anticipates peak pro-
announced last year, but The announcement comes despite one of the duction of 250,000 bpd by 2027.
was not forthcoming, field’s two foreign operators saying last year that Following 2-D and 3-D seismic surveys
while Inpex said publicly progress on the project had been a major chal- exploration and appraisal drilling, studies and
that it was considering lenge and noting that it would consider selling laboratory tests, Lukoil agreed preliminary
selling its stake in the its stake. terms with the MoO for Eridu’s development in
field. July 2021, targeting an initial rate of 30,000 bpd
Slow burn by 2024.
WHAT NEXT: In February last year, general manager of the The maximum remuneration rate for Block
The first phase of Eridu state-owned Dhi Qar Oil Co. (DQOC) Ali Khu- 10, which was awarded in the fourth licensing
is seen producing 30,000 dair told the Iraqi News Agency (INA) that an round, is $5.99 per barrel of oil equivalent (boe),
bpd before ramping up announcement on the commerciality of the field though these terms are also understood to be
towards aa 250,000 bpd was expected to be made just a few weeks later, subject to ongoing amendment discussions.
target in 2027. but no news came. These figures were reiterated by Abdulghani this
At the time, he said that Russia’s Lukoil – week.
the field’s operator – had drilled nine wells in Abdulghani’s predecessor, Ihsan Abdul Jab-
Block 10 since it had agreed a contract with the bar, met with delegates from Lukoil to discuss

Block 10

Image Source: TOGY

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