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D. Thamer Ugaili *: a detailed study of the management of the oil sector - Open Letter
3/9/2015
While I hope that Tovqgua in the oil sector management through the courage and quick action addressing you this open letter which I hope you learned about the nearest opportunity, exhibitors put my expertise to service sector, which she had worked for about thirty years, in addition to Astgala in several countries for more than 15 years, and I ready to discuss and agree on the content of any liability for it. Suffer march State severe failures due to poor management as a result of not putting; " the right man in place appropriate ", but the absence of laws and regulations affecting, and in spite of the fact that the oil ministry is relatively better than others, but they need also to take effective and quick decisions to fix that. Detailed study of the management of the oil sector and Alghazmemkn take advantage of them for a series of specialized workshops, where the debate and reform of the current situation are available, taking into Alaattabaralamwad raised in this report.
First, the contents of the study
provided
1. Iraqi constitution;
2. Projects Oil and Gas Law;
3. Government Performance
4. geopolitical regional;
5. Iraq strategy for oil and gas;
6. reorganization of the oil and gas sector.
Second, the section on Iraq strategy for oil and gas :
Iraq was issued four types of petroleum products before 2003; gasoline, diesel oil, kerosene and fuel oil to Turkey, Syria, Jordan, and through the Arabian Gulf. Since the change, Iraq has become a net importer of products and spends billions of dollars on it, enough Mbag to build more than six new refineries.
Total refining capacity of about 70% of design capacity, nor are building a new refinery and one in spite of the completion of the engineering Anjasaltsamim, (FEED), the four refineries Aktrmen two years ago.
And continues to burn daily Aktrmen 1,000 million standard cubic feet (Mqmq / d) of associated gas from the southern fields in addition to burning approximately 50,000) b j) of crude oil to generate electricity.
It's been more than four years since the second licensing round, while the increase in production remained, (3.3 m b j), and exports (5/2 to 7/2 m b j), modest, compared to the advertised peak rates, and limited improve export capacity on three out of Minaoualbesrh four buoys in the sea, it is believed that it is working card about 50% of the design capacity of $ 850.00) b j), for each platform by circulating reports.
Iraq needs a good, integrated national long-term development plan, based on a clear strategy in the sectors of oil and gas, refining, and take into account other ministries plans, especially electricity, industry and water resources and agriculture, with the participation of competencies of Iraqi experts in the Diaspora to give advice.
Now about the past twelve years since the fall of the former regime, however, successive governments have failed to :
* resolve the significant shortage of petroleum products, due to insufficient refining, in addition to the lack of liquid gas production. It is expected to exacerbate the shortage crisis because of the circumstances faced by the country, which requires the preparation of an emergency plan immediately.
* Achieve noticeable in oil production increased compared with a year before 2003, in line with what authorized by the Ministry of Oil and announced by the Deputy Prime Minister for Energy, in his time, and requires implementation of the following:
new warehouses;
pipelines;
insufficient export facilities.
The project Big water injection, Vmtakhr (very), to ensure the sustainability of higher production in periods of licenses, and the use of wells, pumps until the implementation of the project.
* Start production of free gas, and stop burning Algasalmassahab from the southern fields, and provide for electric power generation, and feeding gas-related industries.
* Expand and improve the performance of the Ministry of Oil companies level, which requires a good choice for advanced cadres and intensify the training and development of the methods of work.
Extraction, (exploration and production)
in our opinion, should include the following strategy:
I- review of oil reserves estimates, OOIP ) ), and the current reserves recoverable with plans to evaluate all the reservoirs are not covered by the development in the fields granted, exploited "for lost time." And will contribute effectively to the development when the time comes for it.
II- review current plans to develop the fields contracted with licensing companies, as well as remaining with the Ministry of Oil:
* adjusted peak production target for each field, (PPT), in all contracts awarded, to be up to 5% of the recoverable reserves during the period of that goal. It should address the current Aalachtnaqat in the constructors Storage, (especially in FAO) warehouse, transportation and export.
* Assuming Kurdistan's contribution to production by, (500,000), barrels / day and exports by 350,000 b / d by 2016 and must be coordinated field development plans with the federal plan if an agreement was reached with the Kurdistan Regional Government. Until then, the oil ministry will continue not to recognize the legitimacy of the Government of the Territory contracts and pursue seriously the legal proceedings against the Turkish government and the companies that buy oil from the Kurdistan Regional Government in isolation from the Ministry of Oil and its related, (Aqrarmgma Texas last about a shipment of oil, which stopped in the sea near Houston came in favor of the government federal).
* Develop target Iraq's production (GDP), 8 million b / d, including excess production capacity, (reserve capacity), up to 2 million b / d.
* Expansion / or start trial production in the green fields that are at the disposal of the Ministry of Oil, (national effort), to evaluate the performance of the reservoir in preparation for future development. With the boot to filter oil locally in small mobile refineries, skif-mounted.
We emphasize here the importance of continuing the Oil Ministry to mobilize attention to increase the role of the national effort and failing to stop at a symposium of the Ministry of Oil, which started in preparing them in oil contributed to the cultural center on 13 k 2 of last year.
We emphasize here not to promote the sharing contracts that have proven that they are in favor of the pleural companies analogy service contracts (full M'hidi and Hamza Jeweler)
* agreement with Iran and Kuwait for the production of the common fields and drainage oils near the Iraqi border fields through the establishment of a new tube or more line ends in Iranian territory in the Gulf. This alternative provides dispense Jordanian Iraqi Line threatened because of the circumstances and the strong potential for the deteriorating security situation in the region, Jordan.
* Expedite the preparation of detailed engineering designs for the massive injection of water and consider the use of public water downstream for this purpose as a backer.
* Develop a plan to maximize resources through projects Industries Almertbty according to the National Strategy for Energy Concepts
III- there is a need to develop a five-year exploration plan, to obtain the seismic data followed by two years of work of exploratory drilling to evaluate the functions and structures in line with the country's conditions of security:
A: Western Sahara;
b: the island region;
c: Diyala province.
d: should target plan exploration possible presence of free gas, including slippers Khuff formation in the large southern fields.
Transformative sector (refining and gas)
refining ;
refining sector is still an urgent need to raise performance through the following steps:
* Improved products that are below the international standard specifications, the Iraqi refineries, after making the necessary maintenance and upgrade of facilities.And increase the production of lubricating oils.
* Accelerate the construction of the four refineries have planned, and the dismantling of the mobile small refineries gradually. The latter can be used as part of the pilot projects Pilot packages, in the green fields, but if it is forced oil ministry Zerrov because of the country's current approach to follow another.
Re-examine the feasibility of establishing export refinery in Basra, as well as coal-oil manufacturing
* Processing of large heavy crude oil reserves in Qayyarah compound, (provided the improved security situation in the region), to be converted to crude lighter before being transported and mixed with other raw or Kirkuk, Ottsfitha appropriate manner.Planned production fields and Qayyarah star is (230,000) barrels a day.
Gas
in the development of the gas industry-associated and free gas field should act immediately to:
* Stop-associated gas flaring and orientation to extract content-rich methane (to generate electricity) and the separation of ethene source Petrochemical Industries.
* Build national gas pipeline with enough links subsidiary to supply power plants The industrial units in Iraq.
* start the national gas production, domestic use and export plan include the contribution of free gas fields, (existing and new discoveries). The piece requires the expansion of the national gas network facilities and liquefied natural gas.
Third: The section on the reorganization of the oil industry;
* Through the Iraqi experience before the change in April 2003 and failures in Iraq's oil industry since confirmed the immediate need to reorganize the Oil Ministry in accordance with the duties associated with the following:
- oil, economic and legal policies;
- to maintain the oil wealth, which is still in force law;
- Oil Law Federal and gas;
- Long-planning, and the average Gosairalamdy;
- research and development;
- classroom training and on-site.
* Re-establish the Iraqi National Oil Company to include
all operating companies, (SoC, Maysan Oil Company, the North Oil Company, Midland Oil Company, Oil Company of Dhi Qar, and any extractive company arise later), in addition to expanding and Ttaiwircherkta exploration Iraqi drilling with the introduction of management training for each.
* Central Department of Planning and Development and field construction.
* Expansion and development of the General Company for Oil Projects, (SCOP).
* Create and support the Iraqi National Refining Company to include existing and new local refiners.
* The establishment of the central Iraqi national gas company, similar to the National Oil Company of Iraq.
* Works as Under Secretary of oil (for extraction), to appoint an experienced person on the spot.
* Formation "Advisory Board of the oil and gas industry" to include a sufficient number of veterans, and converted to the Federal Council later when issuing oil and gas law.
* It should also take steps to abolish the post of Deputy Prime Minister for Energy and replace many of the current general managers and members of the joint committees departments "JMCs" immediate action, as the weak administrative capacity, and experience a modest overall. In the news reported by Iraqi satellite channel on June 2 of this year, which said that Dr. Shahristani met with representatives of Mitsui for the purpose of development of the oil and industrial sectors? With the current administrations ??
Challenges and bottlenecks instant :
extraction:
* storage capacities of crude oil and export warehouses across outlets South beyond.
* pipes Rumaila-Faw, the strategic line lines, the second Iraqi export-Turkish line.
* storage capacity in the FAO complex to replace the direct pumping from the fields to the stations Marine.
* lack of adequate separation facilities for the production of three categories of Basra oil, light, medium and heavy; as well as three ores in the north, (and Kurdistan NOC).
* completion of all necessary to modify the surface facilities to accept higher future rates of associated oil production water steps and increased water product processing power to re-injected, as well as revisit style associated gas processing.
Giant water injection in the southern fields project as a prelude to increase oil production:
- completion of detailed designs after a long wait, which delayed implementation of the project.
- expansion in the use of electric submersible pumps, ESPs, to reduce Tathiraltakhr in the construction of the project?
and the formation of an effective body for coordination between the various companies used for the project, and monitor the performance of the project after the operation began.
A proposal to the Minister of Oil
I've been assuming the price of $ 56 a barrel for the budget compared to the price should not be more than $ 40. To reduce the projected deficit compared Bamuftred ministry need to take swift action requires re-organize and develop a contingency plan to remove the existing bottlenecks and increase production. Knowing the detailed sector, I can organize and manage several workshops in the presence of advanced staff in the ministry and companies, in order to prepare a long-term plan and an emergency plan, a donor .
In the case of approval of the Spearhead cell crisis with the requirements necessary powers and I will prepare an action plan to hold seminars in coordination with the relevant authorities in the Ministry of Oil to determine the following:
- The program;
- To attend?
- When and where?
- Cell crisis lineup;
- Requirements and the required powers.
The proposed workshops
1. The field development plans:
* Licensing courses: Preview of corporate plans and assess the current situation;
* Fields are still with the Ministry of Oil: a detailed assessment and early production of some;
* Position of the region fields and fields under the control of terrorism.
2. chokes in the southern surface facilities and export system.
3. splitters, Iraq / Saudi and Iraqi / Turkish. Iraqi Line / Iranian border.
4. The establishment of the new companies.
5. Oil and Gas Law.
6. oil relationship with the region.
7. natural gas plan, including re-run the current gas pipeline to Kuwait.
8. common fields with Iran and Kuwait.
9. activate maintain oil wealth law.
10. Selection of advanced administrative cadres to replace the current staff.
Like to thank the entire dentex Dr. Mlahoudath the value on the recommendations
(*) Dr. Thamer Ugaili / Petroleum Engineer Consultant / Baghdad on March 2, 2015
Tel: 078046966
Emil: [You must be registered and logged in to see this link.]
The views expressed in this article and in all published material on the site, not necessarily do not reflect the opinion editor Network Iraqi economists body, but only for the author, who bears the scientific and legal responsibility
[You must be registered and logged in to see this link.]
3/9/2015
While I hope that Tovqgua in the oil sector management through the courage and quick action addressing you this open letter which I hope you learned about the nearest opportunity, exhibitors put my expertise to service sector, which she had worked for about thirty years, in addition to Astgala in several countries for more than 15 years, and I ready to discuss and agree on the content of any liability for it. Suffer march State severe failures due to poor management as a result of not putting; " the right man in place appropriate ", but the absence of laws and regulations affecting, and in spite of the fact that the oil ministry is relatively better than others, but they need also to take effective and quick decisions to fix that. Detailed study of the management of the oil sector and Alghazmemkn take advantage of them for a series of specialized workshops, where the debate and reform of the current situation are available, taking into Alaattabaralamwad raised in this report.
First, the contents of the study
provided
1. Iraqi constitution;
2. Projects Oil and Gas Law;
3. Government Performance
4. geopolitical regional;
5. Iraq strategy for oil and gas;
6. reorganization of the oil and gas sector.
Second, the section on Iraq strategy for oil and gas :
Iraq was issued four types of petroleum products before 2003; gasoline, diesel oil, kerosene and fuel oil to Turkey, Syria, Jordan, and through the Arabian Gulf. Since the change, Iraq has become a net importer of products and spends billions of dollars on it, enough Mbag to build more than six new refineries.
Total refining capacity of about 70% of design capacity, nor are building a new refinery and one in spite of the completion of the engineering Anjasaltsamim, (FEED), the four refineries Aktrmen two years ago.
And continues to burn daily Aktrmen 1,000 million standard cubic feet (Mqmq / d) of associated gas from the southern fields in addition to burning approximately 50,000) b j) of crude oil to generate electricity.
It's been more than four years since the second licensing round, while the increase in production remained, (3.3 m b j), and exports (5/2 to 7/2 m b j), modest, compared to the advertised peak rates, and limited improve export capacity on three out of Minaoualbesrh four buoys in the sea, it is believed that it is working card about 50% of the design capacity of $ 850.00) b j), for each platform by circulating reports.
Iraq needs a good, integrated national long-term development plan, based on a clear strategy in the sectors of oil and gas, refining, and take into account other ministries plans, especially electricity, industry and water resources and agriculture, with the participation of competencies of Iraqi experts in the Diaspora to give advice.
Now about the past twelve years since the fall of the former regime, however, successive governments have failed to :
* resolve the significant shortage of petroleum products, due to insufficient refining, in addition to the lack of liquid gas production. It is expected to exacerbate the shortage crisis because of the circumstances faced by the country, which requires the preparation of an emergency plan immediately.
* Achieve noticeable in oil production increased compared with a year before 2003, in line with what authorized by the Ministry of Oil and announced by the Deputy Prime Minister for Energy, in his time, and requires implementation of the following:
new warehouses;
pipelines;
insufficient export facilities.
The project Big water injection, Vmtakhr (very), to ensure the sustainability of higher production in periods of licenses, and the use of wells, pumps until the implementation of the project.
* Start production of free gas, and stop burning Algasalmassahab from the southern fields, and provide for electric power generation, and feeding gas-related industries.
* Expand and improve the performance of the Ministry of Oil companies level, which requires a good choice for advanced cadres and intensify the training and development of the methods of work.
Extraction, (exploration and production)
in our opinion, should include the following strategy:
I- review of oil reserves estimates, OOIP ) ), and the current reserves recoverable with plans to evaluate all the reservoirs are not covered by the development in the fields granted, exploited "for lost time." And will contribute effectively to the development when the time comes for it.
II- review current plans to develop the fields contracted with licensing companies, as well as remaining with the Ministry of Oil:
* adjusted peak production target for each field, (PPT), in all contracts awarded, to be up to 5% of the recoverable reserves during the period of that goal. It should address the current Aalachtnaqat in the constructors Storage, (especially in FAO) warehouse, transportation and export.
* Assuming Kurdistan's contribution to production by, (500,000), barrels / day and exports by 350,000 b / d by 2016 and must be coordinated field development plans with the federal plan if an agreement was reached with the Kurdistan Regional Government. Until then, the oil ministry will continue not to recognize the legitimacy of the Government of the Territory contracts and pursue seriously the legal proceedings against the Turkish government and the companies that buy oil from the Kurdistan Regional Government in isolation from the Ministry of Oil and its related, (Aqrarmgma Texas last about a shipment of oil, which stopped in the sea near Houston came in favor of the government federal).
* Develop target Iraq's production (GDP), 8 million b / d, including excess production capacity, (reserve capacity), up to 2 million b / d.
* Expansion / or start trial production in the green fields that are at the disposal of the Ministry of Oil, (national effort), to evaluate the performance of the reservoir in preparation for future development. With the boot to filter oil locally in small mobile refineries, skif-mounted.
We emphasize here the importance of continuing the Oil Ministry to mobilize attention to increase the role of the national effort and failing to stop at a symposium of the Ministry of Oil, which started in preparing them in oil contributed to the cultural center on 13 k 2 of last year.
We emphasize here not to promote the sharing contracts that have proven that they are in favor of the pleural companies analogy service contracts (full M'hidi and Hamza Jeweler)
* agreement with Iran and Kuwait for the production of the common fields and drainage oils near the Iraqi border fields through the establishment of a new tube or more line ends in Iranian territory in the Gulf. This alternative provides dispense Jordanian Iraqi Line threatened because of the circumstances and the strong potential for the deteriorating security situation in the region, Jordan.
* Expedite the preparation of detailed engineering designs for the massive injection of water and consider the use of public water downstream for this purpose as a backer.
* Develop a plan to maximize resources through projects Industries Almertbty according to the National Strategy for Energy Concepts
III- there is a need to develop a five-year exploration plan, to obtain the seismic data followed by two years of work of exploratory drilling to evaluate the functions and structures in line with the country's conditions of security:
A: Western Sahara;
b: the island region;
c: Diyala province.
d: should target plan exploration possible presence of free gas, including slippers Khuff formation in the large southern fields.
Transformative sector (refining and gas)
refining ;
refining sector is still an urgent need to raise performance through the following steps:
* Improved products that are below the international standard specifications, the Iraqi refineries, after making the necessary maintenance and upgrade of facilities.And increase the production of lubricating oils.
* Accelerate the construction of the four refineries have planned, and the dismantling of the mobile small refineries gradually. The latter can be used as part of the pilot projects Pilot packages, in the green fields, but if it is forced oil ministry Zerrov because of the country's current approach to follow another.
Re-examine the feasibility of establishing export refinery in Basra, as well as coal-oil manufacturing
* Processing of large heavy crude oil reserves in Qayyarah compound, (provided the improved security situation in the region), to be converted to crude lighter before being transported and mixed with other raw or Kirkuk, Ottsfitha appropriate manner.Planned production fields and Qayyarah star is (230,000) barrels a day.
Gas
in the development of the gas industry-associated and free gas field should act immediately to:
* Stop-associated gas flaring and orientation to extract content-rich methane (to generate electricity) and the separation of ethene source Petrochemical Industries.
* Build national gas pipeline with enough links subsidiary to supply power plants The industrial units in Iraq.
* start the national gas production, domestic use and export plan include the contribution of free gas fields, (existing and new discoveries). The piece requires the expansion of the national gas network facilities and liquefied natural gas.
Third: The section on the reorganization of the oil industry;
* Through the Iraqi experience before the change in April 2003 and failures in Iraq's oil industry since confirmed the immediate need to reorganize the Oil Ministry in accordance with the duties associated with the following:
- oil, economic and legal policies;
- to maintain the oil wealth, which is still in force law;
- Oil Law Federal and gas;
- Long-planning, and the average Gosairalamdy;
- research and development;
- classroom training and on-site.
* Re-establish the Iraqi National Oil Company to include
all operating companies, (SoC, Maysan Oil Company, the North Oil Company, Midland Oil Company, Oil Company of Dhi Qar, and any extractive company arise later), in addition to expanding and Ttaiwircherkta exploration Iraqi drilling with the introduction of management training for each.
* Central Department of Planning and Development and field construction.
* Expansion and development of the General Company for Oil Projects, (SCOP).
* Create and support the Iraqi National Refining Company to include existing and new local refiners.
* The establishment of the central Iraqi national gas company, similar to the National Oil Company of Iraq.
* Works as Under Secretary of oil (for extraction), to appoint an experienced person on the spot.
* Formation "Advisory Board of the oil and gas industry" to include a sufficient number of veterans, and converted to the Federal Council later when issuing oil and gas law.
* It should also take steps to abolish the post of Deputy Prime Minister for Energy and replace many of the current general managers and members of the joint committees departments "JMCs" immediate action, as the weak administrative capacity, and experience a modest overall. In the news reported by Iraqi satellite channel on June 2 of this year, which said that Dr. Shahristani met with representatives of Mitsui for the purpose of development of the oil and industrial sectors? With the current administrations ??
Challenges and bottlenecks instant :
extraction:
* storage capacities of crude oil and export warehouses across outlets South beyond.
* pipes Rumaila-Faw, the strategic line lines, the second Iraqi export-Turkish line.
* storage capacity in the FAO complex to replace the direct pumping from the fields to the stations Marine.
* lack of adequate separation facilities for the production of three categories of Basra oil, light, medium and heavy; as well as three ores in the north, (and Kurdistan NOC).
* completion of all necessary to modify the surface facilities to accept higher future rates of associated oil production water steps and increased water product processing power to re-injected, as well as revisit style associated gas processing.
Giant water injection in the southern fields project as a prelude to increase oil production:
- completion of detailed designs after a long wait, which delayed implementation of the project.
- expansion in the use of electric submersible pumps, ESPs, to reduce Tathiraltakhr in the construction of the project?
and the formation of an effective body for coordination between the various companies used for the project, and monitor the performance of the project after the operation began.
A proposal to the Minister of Oil
I've been assuming the price of $ 56 a barrel for the budget compared to the price should not be more than $ 40. To reduce the projected deficit compared Bamuftred ministry need to take swift action requires re-organize and develop a contingency plan to remove the existing bottlenecks and increase production. Knowing the detailed sector, I can organize and manage several workshops in the presence of advanced staff in the ministry and companies, in order to prepare a long-term plan and an emergency plan, a donor .
In the case of approval of the Spearhead cell crisis with the requirements necessary powers and I will prepare an action plan to hold seminars in coordination with the relevant authorities in the Ministry of Oil to determine the following:
- The program;
- To attend?
- When and where?
- Cell crisis lineup;
- Requirements and the required powers.
The proposed workshops
1. The field development plans:
* Licensing courses: Preview of corporate plans and assess the current situation;
* Fields are still with the Ministry of Oil: a detailed assessment and early production of some;
* Position of the region fields and fields under the control of terrorism.
2. chokes in the southern surface facilities and export system.
3. splitters, Iraq / Saudi and Iraqi / Turkish. Iraqi Line / Iranian border.
4. The establishment of the new companies.
5. Oil and Gas Law.
6. oil relationship with the region.
7. natural gas plan, including re-run the current gas pipeline to Kuwait.
8. common fields with Iran and Kuwait.
9. activate maintain oil wealth law.
10. Selection of advanced administrative cadres to replace the current staff.
Like to thank the entire dentex Dr. Mlahoudath the value on the recommendations
(*) Dr. Thamer Ugaili / Petroleum Engineer Consultant / Baghdad on March 2, 2015
Tel: 078046966
Emil: [You must be registered and logged in to see this link.]
The views expressed in this article and in all published material on the site, not necessarily do not reflect the opinion editor Network Iraqi economists body, but only for the author, who bears the scientific and legal responsibility
[You must be registered and logged in to see this link.]
