Page 5 - MEOG Week 10 2023
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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
