Page 5 - MEOG Week 10 2023
P. 5

MEOG                                         COMMENTARY                                               MEOG

                         the development of field and the remaining  raising oil production capacity to 7mn bpd by
                         phases of the West Qurna-2 (WQ-2) asset. Dur-  2027 from the current level of just under 5mn
                         ing a meeting with Stepan Gorgi, Lukoil’s vice  bpd.
                         president for Central Asia, the Middle East and   The nationwide target was reaffirmed late last
                         North Africa, Abdul Jabbar expressed hopes that  year by Alaa Alyasri, director-general of the state
                         production from the field would begin soon  oil marketer SOMO, but has come under scru-
                           Meanwhile, the delegates also discussed  tiny given inconsistency in statements by former
                         WQ-2, which is operated by Lukoil and North  Oil Minister Ihsan Abdul Jabbar, who suggested
                         Oil Co. (NOC), a subsidiary of the Iraqi National  at various points in the last year or so that capac-
                         Oil Co. (INOC).                      ity could reach 8mn bpd, and at others 7mn bpd.

                         National importance                  Inpex issues
                         This week, Abdulghani said: “The development  In November, Inpex CEO Takayudi Ueda said
                         of the Eridu field contributes to the develop-  that his company was considering selling its 40%
                         ment of the economic reality by providing job  stake in the Eridu TSC. Ueda said the project has
                         opportunities for the people of the two counties,  been a “headache [and] has not been progressing
                         and for secondary contractors and other service  well.”
                         sectors that move and are active with the pres-  He added that the company remains inter-
                         ence of these companies operating in the coun-  ested in the project and discussions with the
                         ties of Dhi Qar and Muthanna, and this helps to  government regarding “how to proceed” are
                         increase the rate of growth and economic activity  ongoing, but noted that selling the stake was
                         in these cities.”                    “one option”.
                           Meanwhile, MoO spokesman Assem Jihad   Finding a buyer for such a project in Iraq is
                         said the development of Eridu “comes within  rarely straightforward, and is likely to be made
                         the ministry’s plans to sustain and increase oil  more difficult by the protracted departure
                         and gas production from the exploration fields  of ExxonMobil from the West Qurna-1 TSC
                         and blocks scattered throughout Iraq.”  and difficulties doing business with Russian
                           Jihad added: “One of the most important  companies.
                         goals of developing Block 10 and targeting the   Nevertheless, representatives of Inpex,
                         productive reservoirs in it, by the ministry, is to  together with counterparts from Lukoil and
                         convert the exploration blocks into oil and gas  DQOC, were in attendance at this week’s
                         producing fields in co-operation with interna-  announcement. Given the high-profile issues
                         tional companies.”                   Baghdad has faced with its IOC incumbents, the
                           Indeed, turning exploration to production  MoO may look to incentivise expediting the pro-
                         will be key to Baghdad achieving its goal of  duction push.™

       Week 10   08•March•2023                  www. NEWSBASE .com                                              P5
   1   2   3   4   5   6   7   8   9   10