By John Lee.
Iraq's Middle Oil Company [Midland Oil Company] has signed a preliminary agreement with a joint venture consisting of the Chinese company Jereh and Petro Iraq to develop the Mansuriyah gas field.
Deputy Minister for Extraction Affairs, Bassem Mohammed Khudair, stated that this contract is part of the Ministry of Oil's efforts to invest in gas resources following the signing of the Akkas gas field development contract.
The ministry aims to eliminate flaring and complete ongoing projects, in addition to activating contracts from the fifth and sixth licensing rounds, covering 13 fields across 10 provinces.
General Manager of the Central Oil Company, Mohammed Yaseen, announced that the initial production from the Mansuriyah gas field in Diyala Province is expected to reach 100 million cubic feet per day within 18 months, with peak production of 300 million cubic feet per day projected within 4-5 years after the contract signing.
According to a statement at the end of April from the Media Office of the Prime Minister, the Council has approved the allocation of $506 million for the Midland Oil Company's 51-percent share in the project over the first three years, distributed as $73 million for the first year, $187 million for the second year, and $246 million for the third year.
This amount will be managed by the Midland Oil Company under an agreement with the Ministry of Finance. The project will be included in licensing rounds to settle dues with crude oil or condensates in line with existing licensing contracts.
Mansuriyah gas field was originally granted in Iraq's third licensing round (2010) to TPAO (37.5%), Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), Kogas (15%). That contract was reported to have been cancelled in 2020. A new deal was signed with Sinopec in January 2022. In mid-2023, press reports suggest that the Sinopec deal was in doubt, following requests from the company to amend the contract.
(Source: Ministry of Oil)
Comments are closed.