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Mubasher: The Iraqi Oil Ministry issued, today, Friday, a clarification regarding the recent contracts concluded, while setting the date for the start of the agreement of the French company Total.
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The ministry stated, in a press statement, that, in response to what was reported by social media regarding gas development programs and projects in the south, the Mansouriya gas field in Diyala, and the crutch gas field in Anbar Governorate, and for the importance of clarifying the nature and content of these agreements and contracts to public opinion and those interested once again, Although it has been published by the Ministry of Oil and authorized on more than one occasion, in addition to its presence on the official website of the Ministry, public news sites, the media and the press.
She added, that the Ministry of Oil and its companies affirm its keenness on the optimal investment of the national wealth, and work on developing oil and gas fields with high professionalism, despite the economic, health and security challenges, while placing the national interest above all considerations, away from media excitement.
She indicated that the agreement with the French Total Company will enter into force in the first quarter of this year 2022, after obtaining the necessary approvals and reviewing them by the regulatory authorities. Next:
: Al-Mansuriya Gas Field
Its objective is to develop and invest in gas fields to secure the local need of dry gas, with the aim of supplying gas-fueled electric power stations, in addition to reducing imports from neighboring countries, maximizing financial revenues, and providing job opportunities. And revitalizing the economic movement in the province.
- The field was shown in the third licensing round 2010
- And in 2010 the consortium of "Turkish TPAO, Kuwait Energy, and Korean Kokaz" companies won.
- It was impossible for companies to start development operations, due to the security situation in the governorate in 2014.
Because of the importance of the field in the national strategy to increase natural gas production, and in particular, the expansion of electric power generation that runs on natural gas fuels, a field was launched Mansourieh gas field for competition based on Cabinet Resolution No. (270) of 2019 containing the approval of what was stated in the Ministry of Oil letter No. 1765 on 17/6/2019 to develop the Mansouriya gas field with the national effort, with the participation of one of the qualified international companies (51% of the Central Oil Company and 49% of The foreign company) and the approval of the standard contract for the border fields round (the fifth round) according to the principle of profit share (Profit Share).
Accordingly, the Ministry of Oil started organizing a competition round to develop the Mansourieh gas field, and fundamental measures were taken in this regard, which included the following steps:
Selecting a number of qualified international companies and inviting them to participate in the development of the field, numbering (16) companies, where (9) companies expressed their desire to participate in the development of the field, namely PetroIraq, CNOOC, Gazprom, Total, PPL Asia, Zarubezhneft, UEG, SINOPEC, Jereh Energy Group.
- On 31/3/2021 and according to the final tender document, 20/4/2021 was set as a date for the effectiveness of the competition, as the contract obliges the contracting company to achieve the first commercial production at a rate of no less than (100) million standard cubic feet of gas. dry gas per day within (4) four years from the date of contract entry into force and achieving the peak production target of (300) three hundred million standard cubic feet of dry gas within (7) seven years from the date of contract entry into force.
- A committee was formed headed by the Minister of Oil and with the membership of the Undersecretary for Extraction Affairs and the general managers of the departments (legal, petroleum contracts and licenses, internal control) in addition to the assistant general manager of the Central Oil Company, where the competition event was implemented on 20/4/ 2021 at the Ministry of Oil building. In the presence of the agents and general managers of the ministry’s formations and representatives of foreign companies, the competition process resulted in a referral to the company that submitted the lowest bid, which is the Chinese company (SINOPEC), which is shared between the Central Oil Company (51%) and Sinopec (49%) according to the decision of the Council of Ministers above. They were notified on 20/1/2022, when the contract was initialed between the Department of Petroleum Contracts and Licensing of the Iraqi National Oil Company and the Chinese company (SINOPEC).
- This is a preliminary contract, which requires obtaining the approval of the Ministerial Energy Committee and the new Council of Ministers, after which the final signature is done by the Central Oil Company, one of the national oil companies, and the Chinese Sinopec Company in order to activate the contract and start development operations.
Second: the crutch gas field
- The gas crutch field contract was presented and transferred as part of the third licensing round of gas fields 2010 to the Korean Kokaz Company, where the company started the work of developing the field and contracting materials and gas refining equipment, and the company was unable to complete its work due to the terrorist events of ISIS and the negotiation group led to the withdrawal company.
Because of the importance of the Okaz dry gas thermal station and the Anbar thermal station in generating electric power, and to meet part of the local need, the ministry is communicating with several solid regional and international companies for the purpose of reaching an agreement that achieves the planned goals of developing the field and producing gas, but no agreement has been reached. Agreement or contract with any of these companies so far.
Third: The agreement with the global company Total
- Total International has worked for several years to provide high technical support to the Iraqi oil industry and has been the leader in providing studies for the development of giant oil fields in Iraq during the past thirty years. The project is proceeding due to the political conditions of the country.
French Total for the mentioned projects. To move the project forward for the great development results that this project represents.
The agreement with the French company Total included:
- Four important contracts that contribute to achieving sustainable development, through gas investment contracts with a capacity of 600 million standard cubic feet, and transportation and treatment of sea water... with a capacity of (5) million barrels per day, to maintain and increase production from oil fields, and a contract to generate 1,000 megawatts of solar energy, And the Artawi field development project, which aims to increase production to more than 210 thousand barrels per day.
- This agreement, which came according to the formula of contracts for the fifth licensing round, "profit sharing", is one of the pioneering steps to develop the oil and gas industry in Iraq, in cooperation with one of the largest and reputable international companies, which will place huge financial investments in these projects, as well as the exchange of experience and modern technology. And in a way that contributes to the development of the oil industry, maximizing financial revenues, providing job opportunities for the people of Iraq, and working to stop burning gas and converting it into useful energy to supply electric power plants, petrochemical industries and others, as well as reducing emissions and pollutants.
And the ministry added, that the National Oil Company had obtained the approval of the esteemed Council of Ministers in accordance with Resolution (361) for the year 2021 with the Ministry of Oil’s contribution to the infrastructure development project, which was transferred to Total, at a rate of no less than (40%), provided that the sums are recovered from Funds generated from oil exports to contribute (40%) of Total's share of (100%), which will maximize the financial revenues of the national partner
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