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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Economic diagnosis of a major loss in the Qayyarah oil field

    Rocky
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    Economic diagnosis of a major loss in the Qayyarah oil field Empty Economic diagnosis of a major loss in the Qayyarah oil field

    Post by Rocky Sun Sep 22, 2024 7:47 am

    Economic diagnosis of a major loss in the Qayyarah oil field

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    Economy News - Baghdad
    Economic expert Nabil Al-Marsoumi revealed today, Sunday, a huge loss in the Qayyarah oil field, wondering about the benefit of producing oil there as long as its revenues are not enough to cover even transportation prices.
    Al-Marsoumi wrote on his blog, which was followed by “Al-Eqtisad News”, in astonishment: “What is the point of producing oil from the Qayyarah field?” indicating that the field located in Nineveh has a confirmed reserve of one billion barrels, and includes 50 oil wells, 34 of which were damaged by the terrorist organization ISIS.
    Al-Marsoumi explained that the current production amounts to 30 thousand barrels per day, which are transported from the Qayyarah field by tankers and railway lines for loading fuel to Basra for export abroad. The Qayyarah refinery is also supplied with 3 thousand barrels of crude oil per day.
    He pointed out that the quality of oil produced from the Qayyarah field is considered "poor oil", as it is very heavy oil with a density of 11 and high acidity with a sulfur content ranging from 6 to 8.5%.
    The economic expert explained the reasons for the loss as follows:
    • The company investing in the field: Angolan company Sonancol under the second licensing round 
    • Profitability fee = $5 per barrel of oil produced
    • Oil transportation fees from Qayyarah field to southern ports = $12.5 per barrel
    • Cost of producing one barrel = $24.8
    • The discount recently granted for marketing Qayyarah oil = $28.3 per barrel

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    He concluded that "the total costs of production, transportation and profitability = $46.8/barrel," explaining that "with the recently granted discount, the total becomes $75.1 per barrel."
    Al-Marsoumi explained that, "Therefore, there is no economic benefit from producing oil in the Qayyarah field when the price of oil is less than $75, in addition to Iraq's commitment to OPEC cuts, which requires that the cuts be from high-cost fields and not from low-cost fields to maximize oil revenues."[/size]


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