Minister of Oil: Negotiations with an international company to invest gas in 4 fields

[yota691]

Minister of Oil: Negotiations with an international company to invest gas in 4 fields

• Time: 03/17/2023 11:12:00
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• Read: 1,404 times

  

{Economic: Al Furat News} The Minister of Oil, Hayan Abdul Ghani, inaugurated the first phase of the project to develop the Hammar Musharraf gas compression station in the Zubair oil field in Basra Governorate.

Abdul-Ghani said during the inauguration ceremony of the project, that: "The Hammar Musharraf compressor station in the Zubair field is one of 24 gas compressor stations, and it includes four compressors with a capacity of 35 million standard cubic feet, and today two additional compressors have been added with a capacity of 32 million standard cubic feet per day." . 
He added, "This project will add new quantities of raw gas, including 30 cubic meters of dry gas, 150 tons of liquid gas, and (600) barrels of condensate."

And the Minister of Oil continued, "The Basra Gas Company will add five new compressors in the second phase of this project to raise the production capacity to 147 million standard cubic meters per day," indicating that "these five new compressors increase the ability to invest associated gas and reduce its combustion process in the Zubair field." In addition to providing good quantities of dry gas to electric power plants.

He pointed out, "This project comes in line with the government program to reduce the rate of burning gas and convert it into clean energy that supplies all industries related to fuel with gas, including electric power stations."

The Minister of Oil revealed, "There are negotiations with a specialized international company to invest in gas from the fields of {Majnoon, West Qurna / 2, Al-Luhais, Artawi}," expressing his hope "to sign investment contracts in this field soon."

[yota691]

The Minister of Oil launches a vital gas investment project

Iraq  2023/03/18

 

 

 Basra: Saad Al Sammak 

 

Yesterday, Friday, Oil Minister Hayan Abdul-Ghani inaugurated the first phase of the project to develop the Hammar-Musharraf gas compression station in the Zubair oil field in Basra Governorate, while he revealed the existence of negotiations with an international company to invest gas in four fields.

 

Abdul-Ghani said in his speech on the occasion, in the presence of the "Al-Sabah" correspondent: "The Musharraf donkey press station in the Zubair field is one of 24 gas press stations, and includes four presses with a capacity of 35 million standard cubic feet, and today two additional presses have been added with a capacity of 32 million cubic feet." standard per day.

 

He added, "This project will add new quantities of raw gas, including 30 cubic meters of dry gas, 150 tons of liquid gas, and (600) barrels of condensate. The Basra Gas Company will add five new compressors in the second phase of this project to raise the capacity of production to 147 million standard cubic feet per day.

 

He pointed out that "these five new compressors will increase the ability to invest associated gas and reduce its combustion in the Zubair oil field, as well as provide good quantities of dry gas to electric power stations."

 

He pointed out that "this project comes in line with the government program to reduce the rate of burning gas and convert it into clean energy that supplies all industries related to fuel with gas, including electric power stations."

 

The Minister of Oil revealed that "there are negotiations with a specialized international company to invest in gas from (Majnoon, West Qurna / 2, Al-Luhais, Artawi) fields," expressing his hope to sign investment contracts in this field soon. According to the statement of the international "Basra Gas" consortium, "the total production of the press station (Hammar-Mishref) will reach 67 million cubic feet (mqmq) per day, and the station is one of the company's 24 press stations, and it is the first station that has been modernized." With the start of the establishment of the Basra Gas Company in 2013, the company's consortium consists of (the Ministry of Oil; Shell International and Mitsubishi). 

 

The company stated that "the project in the pressing station consists of two units that will add an additional 400 million standard cubic feet to the total current production capacity of one billion cubic feet per day, which will reach 1400 million cubic feet (mcf) per day, during the coming years. 

 

On a related note, Andrew Weber, Managing Director of the Basra Gas Company, expressed his happiness on this occasion, saying: "Our company is fulfilling its obligations as usual. Today, it launched the first phase of the Hammar-Mishref Gas Compression Station development project." 

 

He added, "Our goal is to support the Iraqi government's vision to increase production capacity while reducing gas flaring in southern Iraq and converting associated gas into cleaner energy that benefits Iraqi citizens." "The company plays a pivotal role in reducing gas flaring from the first three licensing round fields, and our ambition is to end long-term flaring from those fields. With the implementation of each project we offer, we are one step closer to achieving our goals."

 

In addition, the company clarified in its statement that "the production rates of the Basra Gas Company amount to about 900 million standard cubic feet per day, equivalent to the production of 3.5 gigawatts of electric power," and indicated that "the company is currently collecting more than 60% of the available gas from The three fields of the first licensing round are (Rumaila field, West Qurna 1 field and Zubair field). 

 

She emphasized that “our company (Basra Gas) is the main center for collecting and processing associated gas and the main source of hydrocarbons used for power generation.” government by diversifying funding sources and turning it into a country that is a complete exporter of liquefied petroleum gas (cooking gas).

 

She added that "the company has an important role in reducing the amounts of carbon dioxide emissions resulting from the burning of associated gas, and that since its establishment until the end of last year 2022, the company was able to prevent approximately 160 million tons of carbon dioxide emissions from entering the atmosphere."

 

Edited by: Muhammad Al-Ansari

[coorslite21]

An example of the progress Iraq is making.....seems things are moving fast. 

CL

 

 

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Iraq And UAE Spearhead Downstream Expansion

By Cyril Widdershoven - Mar 17, 2023, 6:00 PM CDT

Oil markets have been affected by financial market challenges, inflation, and the war in Ukraine. Nevertheless, Arab Gulf countries remain resolutely optimistic, evidenced by new refinery and storage plans being developed in Iraq and the UAE.

This week, Iraqi minister of oil Hayan Abdul Ghani said that Baghdad has invited investors to set up seven new oil refineries throughout the country. Ghani said also that bidding has opened for three refineries today, while offers for three other ones are expected on April 2. Ghani also reiterated that the new investments "constitute a shift in the government's strategy towards encouraging foreign investment in oil refining and opening new horizons for international companies and the local private sector in this industry". Sources have indicated that the first three refinery projects entail a 50,000 bpd refinery in the Southeastern Maysan Governorate, a 70,000 bpd refinery in the Nineveh Governorate in North Iraq, and a 30,000 bpd refining unit in Basra. The April 2 offers are for a 50,000 bpd refinery in the Southern Dhi Qar Governorate, a 100,000 bpd refinery in Wasit (East Iraq), and a 70,000 bpd refinery in Muthanna (South Iraq). The seventh refinery project is slated to be for a 70,000 bpd refinery in the Western Al Anbar Governorate. 

The refinery expansion strategy comes at a time when Iraq is still struggling to adhere to its OPEC quotas. State-owned Iraqi oil marketeer SOMO reported that in February 2023, Iraq produced around 4.34 million bpd, a small change from the previous month, and still 92,000 bpd below official OPEC quota levels.  In January 2023 production levels also were around 100,000 bpd below OPEC production quota, while December 2022 levels were at 4.43 million bpd. The main underlying reason for the current low production levels is the maintenance work taking place at the 400,000 bpd West Qurna 2 oil field. The shortfall however contradicts official statements made in January 2023 that other Iraqi oilfields would be able to compensate for lower production at West Qurna 2. Related: Here's How Gasoline Prices Fared Under The Last Four Presidents

A more positive development this month is the rapprochement between Baghdad and the KRG, which have been at loggerheads about oil revenues from Iraq's northern oil operations.  According to Iraqi PM Mohammed Shia' Al Sudani, Baghdad and the KRG government have reached an agreement to end the Baghdad - Erbil dispute over the Kurdistan region's oil revenues. Al Sudani stated to the press that the Kurdish oil revenues will be put in a single account that both the PM and the Kurdistan PM will have control over. 

And the stakes in Iraq's north are huge. Often dubbed as one of the last oil frontiers, the lifting cost for oil remains the lowest in the world at around U$2-3 per barrel, on a par with that of Saudi Arabia, and reserves are vast.

 

Genel, a major partner working in the Kurdish region oil and natural gas industry, has reported that year-end 2022 gross 2P reserves at its Tawke license (Genel holds 25% working interest) are 327 million barrels. According to DeGolyer and MacNaughton international petroleum consultants, production was 39 million bpd in 2022 with an upward technical revision of 9 million barrels.

Through implementation and observation of the performance of phase 1 of the Tawke field Enhanced Oil Recovery (EOR) project, 11.7 MMbbls out of 23.3 MMbbls were moved from 2C resources into 2P reserves.

Meanwhile, at its Taq Taq concession (44% working interest, joint operator), gross 2P reserves are 24 million barrels as of end-2022 (26 million barrels at end-2021) after producing 1.6 million barrels according to McDaniel & Associates independent assessment.

And at its Sarta concession (Genel 30% working interest, operator) Genel's estimate for gross 2P reserves is 9 million barrels at the end-2022 mark (32 million barrels at end-2021) following production of 1.7 million barrels after evaluation of results from appraisal wells and pilot production.

At the same time that Iraq is looking to give its downstream industry a nudge, the UAE's plan to create a global oil hub at Fujairah looks much brighter. The Emirate hub is facing pressure due to the increased influx of Russian oil volumes, which has resulted in a strain on available storage and transit options. European markets have banned Russian oil, and Moscow has redirected its flows to Asia, providing an opportunity for Fujairah and other Emirati parties to take advantage.

VTTI Fujairah Terminals commercial manager Maha Abdelmajeed stated at the Fuel Oil Forum (FUJCON) that the terminal has seen a significant influx of Urals and naphtha, which he expects to last in the near future. However, existing tanks are already full, indicating that Fujairah's storage capacity of 1.1 million cubic meters has been reached. Vessel data from 2022 shows that Fujairah has received around 12,500 vessels, with total volumes up by approximately 10%. The Port of Fujairah's BD Manager, Martijn Heijboer, expects a healthy appetite for new transit volumes and storage demand. Additionally, Fujairah is set to commission a dry bulk export facility soon, which will add approximately 18 million tons of aggregate handling capacity in Dibba. By 2050, methanol and LNG are projected to have the top market share of alternative bunker fuels at Fujairah, followed by biofuels and ammonia. With these developments, Fujairah is expected to be well-positioned to become one of the world's largest bunkering hubs.

By Cyril Widdershoven for Oilprice.com

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Cyril Widdershoven

Dr. Cyril Widdershoven is a long-time observer of the global energy market. Presently, he holds several advisory positions with international think tanks in the Middle… More

 

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