Gazprom Neft signs agreements with Iraqi Kurds
A worker at the Khurmala oilfield in Arbil, 310 kilometres north of Baghdad. | EPA/KAMAL AKRAYI
Russian Gazprom Neft through its subsidiary Gazprom Neft Middle East has entered new hydrocarbon exploration and production projects in Iraq, the oil unit of Russian gas giant Gazprom said in a statement on 1 August. The company signed two production sharing contracts (PSC) with the Kurdistan Regional Government of Iraq. The production sharing contracts cover Garmian and Shakal blocks located in the south of Iraq’s Kurdistan Region, the statement read.
Geological prospecting is now underway at the indicated blocks, upon the completion of which full field production should start no later than 2015. Gazprom Neft shall get a 40% share in the Garmian block. CanadianWesternZagros, which is the other production sharing contract participant with a 40% share, will remain the project operator until the commencement of the development period under the PSC. Gazprom Neft shall also get an 80% share in the Shakal block where the company will be the operator. The Kurdistan Regional Government carried interest in both contracts is 20%.
As appraised by Gazprom Neft, the resource potential of both blocks exceeds 500mn tonnes of oil equivalent (around 3.6bn barrels of oil equivalent).
"Based on our positive experience in co-operation with the Republic of Iraq, where we are already participating in the development of Badra field, the company had decided to expand its presence in this country,” Gazprom Neft First Deputy CEO Vadim Yakovlev said. “After conducting a detailed analysis of economic parameters of the projects we have identified them as highly effective. Taking into account the synergy that we can get from working on two adjacent blocks, Gazprom Neft considers the territory of the Kurdistan Region of Iraq promising for further geological study and consequent production at the fields. Carrying out these projects will allow Gazprom Neft to increase its input in Iraq’s plans to boost oil production, to gain additional experience in this country and to expand its presence abroad," Yakovlev added.
Agreements between Iraqi Kurds and foreign oil companies have angered the Iraqi government, fighting with the self-ruled region over rights to develop resources. Baghdad wants to manage its energy resources nationwide, but Kurds insist the constitution doesn't require them to go through Baghdad.
Kurdistan, three provinces that span northern Iraq and border Turkey, sits on estimated 45-50bn barrels of oil. That's a fraction of the 143.1 billion barrels of known reserves and possibly as much again in untapped fields, in Iraq as a whole.
On 31 July, the Iraqi government's oil dispute with the semiautonomous Kurdish enclave reached crisis point after French oil giant Total signed an exploration deal with Kurdistan. US oil majors ExxonMobil and Chevron have signed similar deals. Norway's Statoil is showing interest in joining them. (KG)
No comments:
Post a Comment