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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

       P4                                       www. NEWSBASE .com                         Week 10   08•March•2023
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