POSTED ON BY SOTALIRAQ
Translation: Hamed Ahmed
An international report confirmed that Iraq is on the cusp of the return of global oil investments, expecting the volume of production to reach 12 million barrels per day. A report by (Oil Price) website, translated by (Al-Mada), stated that “the international oil expert Simon Watkins indicated in his report on the Iraqi oil sector that the decision of the Federal Supreme Court to cancel the Iraqi government’s decision to establish the National Oil Company has restored the field again for international oil companies to invest. in Iraq”.
The report added, “Watkins confirmed that a new investment by international oil companies in the Iraqi oil sector would move the country a step closer; It aims to increase production in the long term.
He pointed out, “Watkins mentioned that among the international oil companies that may reinvest in Iraq is the French company (Total), which signed a contract with the Iraqi Oil Ministry last February worth 27 billion dollars; To implement four projects in the oil and gas sector.
And the report indicated, “After this step, Iraq may eventually be able to make leaps in the field of developing production in the oil and gas sector through the use of investments by international oil companies.”
He promised, “Total Energy’s deal of four projects is a solid starting point towards achieving this goal.”
The report stated, “The first project related to laying water pumping pipelines for oil fields is very vital to enable Iraq to reach its goals of achieving a crude oil production rate of 7 million barrels per day over a longer period, and until after that it reaches an average of 9 million barrels per day and maybe 12 million barrels per day.” million barrels per day.
And he noted, “The first phase includes the completion of the normal sea water supply project, which will witness the initial investment from the first phase at a value of $3 billion.”
The report concluded, that “this includes withdrawing water from the Arabian Gulf, treating it, and then transporting it through pipelines to oil production facilities to maintain the continuity of pressure in oil wells to extract crude oil from the ground and the perpetuation of high production rates in oil fields.”
He stressed, “The plan of the regular sea water supply project, which has been much delayed, will initially be used to supply approximately 6 million barrels of water per day for at least five oil fields in Basra and another field in Maysan Governorate, and then lay pipelines for use in other fields.”
He continued, “The second phase of the projects is of high importance and an urgent necessity as well, as it includes the collection and processing of associated natural gas, which is currently burned in five oil fields in southern Iraq, which are West Qurna-2 field, Majnoon field, Tuba field, Al-Luhais field and Artawi field.”
The report spoke of “the possibility of (Total) investing $2 billion in the first phase of this project by building an associated gas processing plant.”
It quoted “Iraqi Oil Minister Ihsan Abdul-Jabbar’s comments last year, which highlighted that this project is expected to produce 300 million cubic feet of gas per day and double this number in the second phase of project development.”
The report goes on, “Abdul-Jabbar said at the time that the gas that would be produced from the second phase of the Total project will also help Iraq reduce its import of gas from Iran.”
The report stated, “The Iraqi Oil Minister also said that the gas produced locally and cheaper than imported from Iran may also give way to huge investments from giant American oil and gas companies.”
And the report added, “Successfully collecting associated gas instead of burning it will also allow Iraq to revive the Nebras petrochemical project with the Dutch company (Royal Dutch Shell) worth $11 billion.”
He cautioned, “Continuing the project at the right pace may help to complete it within five years, and it will provide returns and financial benefits to Iraq within the initial contract period of 35 years, estimated at $100 billion.”
The report stressed, “The third part of the four-project Total deal aims to boost crude oil production rates in the Artawi field to reach 210,000 barrels per day, compared to the current production of 85,000 barrels per day.”
And he went on to say that “this project may lead to the involvement of Total in similar production enhancement projects in other oil fields across the country.”
The report added that “the fourth and final part of Total’s projects under this deal will be the construction and operation of a solar power plant to generate 1,000 megawatts of electric power.”
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