Licensing rounds, oil and gas and their impact on the Iraqi economy

Licensing rounds, oil and gas and their impact on the Iraqi economy

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An expanded report:
Scheduled to start at the headquarters of the Oil Ministry on Wednesday and Thursday the next licensing round, the fourth organized by the Ministry for international companies to invest in the fields of new oil and gas in most parts of Iraq with the participation of (47) companies from various nationalities.

It is scheduled to participate in this round of 47 companies, including (Kuwait Energy) Kuwaiti and (BP) British and (Mitsubishi) and Japanese (Chevron) U.S. and (ENI) of Italy and the two companies (Kaz Brom) and (Lukoil) Alrusitan and (Shell ) and Dutch (Total) in addition to the French company (Oyal General) of Syria.

It was not the previous licensing rounds the result to certain conditions, but according to the scheme came to invest oil and gas in Iraq after 2003.

In the month of May of 2005 was signed memoranda of understanding between Iraq and thirty foreign company include the training of Iraqi personnel, business investment and studies on the minerals.

Preliminary studies were made to invest the Majnoon field, discovered in 1975 and estimated reserves of between (11 30) billion barrels, according to the Ministry of Planning, and Halfaya field in Maysan, which includes a reserve of about 5.4 billion barrels.

The small fields have been an initial agreement between the Ministry of Oil and foreign companies to develop such as a field of Nasiriyah, which was referred to a company (ENI Ripoll) and the field of brick to the companies (ongc) and Sonatrach, and (Petrofeni), and the field Artawi to companies (Shell Ahibtronas and Kanuki) and field Gharraf to my company (Masthynburt Roznevtkaz and Export), and the field of architecture to the company (Petro Vietnam) and (Nur) of Syria.

The announcement was producing oil fields and developed in the first round of licensing 30/6/2009 and included a tour of six oil fields are: Rumaila North and South, West Qurna (Phase I), Zubair, Kirkuk and Bai Hassan and Maysan, as well as the fields of Mansuriyah and crutch invading.

There are in these oil fields about 45 billion barrels of proven oil reserves, a rate equivalent to 39% of the total reserves of Iraq oil, producing these fields are currently about 2.250 million barrels per day, equivalent to about 90 percent of Iraq's current crude oil and believed about 90% of public revenues.

The outcome of the first round of licenses to transmit three giant fields are North and South Rumaila and West Qurna Phase (1), Zubair, which is the custody of the South Oil Company, to a group of foreign oil companies.

The fields of Kirkuk and Bai Hassan and Maysan and the invading cane fields and Mansuriyah, did not receive contracts for development by foreign oil companies therefore remained those fields under the national effort represented by two companies of the North Oil and Maysan Oil.

Targeted the Ministry of Oil from behind the licensing round, the first increase in oil production at 5.1 million barrels per day over the next five years, will foreign companies to increase production of the fields that got developed a rate of 10% during the first three years as will production agreed upon in the years that followed.

And thus will become Iraq's production will be about 4 million barrels per day after five years, within the limits of 2015, as will reach peak production will it add these companies to the current production of about 3.75 million barrels per day after about seven years, and perhaps in 2017 and then will increase production to about 5 million barrels per day in the same year.

The second licensing round and began to 11/12/2009 included This tour ten fields are West Qurna Phase (2) and crazy and Halfaya and Gharraf and Badra and Star Qayyarah and fields east of Baghdad - Diyala and Euphrates amid fields.

There are (4) giant fields in the oil fields ten unexplored and undeveloped covered in this round, and has proven reserves of these fields about 5.41 billion barrels, equivalent to about 36% of proven oil reserves in Iraq and this means that 75% of oil reserves in Iraq, was included in two rounds of licenses first and second.

And international oil companies got the contract to develop seven oil fields are: West Qurna Phase (1), Majnoon and Halfaya and Gharraf and Badra and Star Qayyarah, did not win Fields Baghdad, Diyala and Euphrates to the development of any contract.

And attributed the reluctance of companies to develop the field east of Baghdad, one of the four giant fields included in the second round of licensing for reasons related to the fact that the field is located within a residential area as well as it contains heavy oil, one of the oils is what makes it desirable to extract a difficult and complex.

And will add this tour to Iraq's oil production to 4.75 million barrels per day in 2017 and then will increase production to about (10) million barrels per day in the same year (during the first and second rounds). \

And assuming the price (60) Dolarallbermal per share (after deducting the return of service for companies and the cost of extraction) and assuming export about (9) million barrels per day, the oil revenues will be about (194) billion dollars in 2017 which exceeds the revenue the current oil by more than four-fold.

Did not result in licensing rounds for the first and second assignment of any gas field for foreign companies, and so came the third licensing round, which opened in 20/10/2010 specialized fields of the three invading Iraq.

These included round three fields: the crutch and Saybah and Mansuriyah. The field is located crutch north western province of Anbar near the Syrian border, a length of 50 km and presentation of 18 kilometers, and discovered in 1992 and the estimated size of the reserve in which about 6.5 billion cubic feet, and contains six wells have been drilled in the reservoir Khabur, the largest three fields.

And compete on the field crutch gas company Total, a coalition of French and / or ITP / Turkish, and a consortium of Korean and Kocaz Munai Kaz Kazakhstan.

The coalition of the two companies won the contract, Korean, Kazakh (divided equally between them) to reach peak production of 400 million standard cubic meters during the period of 13 years.

The field is located Saybah in the southern province of Basra, a length of 25 km and a width of 6 kilometers and was discovered in 1968 by the French company Total, and migration has not been developed since then, its stock up to 5.1 trillion standard cubic meters.

This is the field of gas and small fields where there are three dug wells produce 60 million standard cubic meters, and identified the oil ministry invested for a period of 9 years.

And compete on the field Saybah consortium / Energy Kuwait / Kuwait and / or NBA T / Turkish, with the company / Kaz Monicaz / Kazakhstan, which has offered $ 16 a barrel and the equivalent amount of produce 65 million standard cubic meters.

The coalition won the contract Kuwait Turkish (60% of the Kuwaiti company and 40% for the Turkish company) after he gave 5.7 dollars per barrel and production ceiling of 100 million standard cubic meters.

With regard to field Mansourieh which is located in Diyala province near the border Ernah, he is the second field in terms of importance between the fields of the three, with a length of 29 km and 5 km wide, and includes this field, discovered in 1978, four wells, and has gas reserves of around 5.4 trillion m standard cubic.

And won a contract to invest in this field, a coalition led by TPAO by 50% and the membership / Kuwait Energy / by 30% and the Korean Kocaz by 20%.

This coalition gave $ 10 a barrel equivalent, which is the price set by the ministry and of 7.5 dollars. Coalition has pledged to produce 330 million cubic feet in 13 years.

It contains three fields combined on more than 11 trillion cubic feet of gas account for about 10% of the reserves of Iraq's proven natural gas, and 45% of Iraq's reserves of free gas installer.

And would have on this tour in addition to 830 million cubic feet per day during a period of 13 years of Iraq's production of natural gas, which currently stands at 900 million cubic feet, and thus will increase Iraq's production to one billion and 730 million cubic feet when they reach the investing companies to produce a peak after 13 years.

It is recommended by various experts in this area, the oil ministry to exercise the pressure on the winning companies to invest gas fields of the three direction that leads to diversify the natural gas industry for Iraq to be at the forefront of countries of Persian Gulf in the manufacture of GTL in order to diversify the structure of the industry hydrocarbon and the development of human skills to take advantage of new technologies in the oil and gas industry.

Confirms these experts that Iraq has the requirements of this new industry a very low cost, increasing the competitiveness of Iraq in this field because the fields of country, for example, which is the first global production of liquefied gas is offshore fields in most of them while the Iraqi fields are all fields of land. / End 2



Updating :: 28/05/2012 11:45

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