Iraq seals deals to develop 2 gas fields
Source: Agencies |
June 6, 2011, Monday
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IRAQ yesterday finalized deals with a pair of international consortiums to develop two promising natural gas fields, the latest step by the war-ravaged country to tap its own resources to fuel its growing power demands.
The country has been struggling to rebuild its damaged electricity grid and improve power stations and lines. Blackouts are still common. Last summer, power shortages spurred demonstrations that turned deadly when security forces fired into crowds.
Turkey's TPAO-led consortium will develop the 4.6 trillion cubic feet Mansouriya field in eastern Iraq for US$7 per barrel of oil equivalent. It plans to reach a peak production of at least 320 million cubic feet per day.
State-run Kuwait Energy and Korea Gas Corp (KOGAS) are teaming up with TPAO.
The second consortium that groups Kuwait Energy with TPAO will develop the 1.1 trillion cubic feet Siba field in the south. They will be paid US$7.50 per barrel of oil equivalent to what they produce, with a peak production level estimated at 100 million cubic feet.
Peak production from the two fields must be sustained for 13 years. The first commercial gas to come on stream must be at least 25 percent of the planned peak production and must be achieved in the first three years.
"The ministry has drawn an ambitious plan to meet the needs for electricity, to meet the needs of gas-dependent industries and to make Iraq one of the leading countries that export gas," said Oil Minister Abdul-Karim Elaibi.
Both deals signed yesterday were snatched during Iraq's third energy bidding round last October that offered three gas fields. The third field was the 5.6 trillion-cubic foot Akkas field near the Syrian border in western Iraq. That deal was initialed with KOGAS last Wednesday and still must be approved by the Cabinet before it is finalized.
Iraq produces about 7,000 megawatts of electricity daily - about half its actual need. That includes about 1,000 megawatts imported from Iran and Turkey.
Last month, Iraq signed a tentative deal with Iran to import 25 million cubic meters of natural gas daily to feed two power plants.
The country has been struggling to rebuild its damaged electricity grid and improve power stations and lines. Blackouts are still common. Last summer, power shortages spurred demonstrations that turned deadly when security forces fired into crowds.
Turkey's TPAO-led consortium will develop the 4.6 trillion cubic feet Mansouriya field in eastern Iraq for US$7 per barrel of oil equivalent. It plans to reach a peak production of at least 320 million cubic feet per day.
State-run Kuwait Energy and Korea Gas Corp (KOGAS) are teaming up with TPAO.
The second consortium that groups Kuwait Energy with TPAO will develop the 1.1 trillion cubic feet Siba field in the south. They will be paid US$7.50 per barrel of oil equivalent to what they produce, with a peak production level estimated at 100 million cubic feet.
Peak production from the two fields must be sustained for 13 years. The first commercial gas to come on stream must be at least 25 percent of the planned peak production and must be achieved in the first three years.
"The ministry has drawn an ambitious plan to meet the needs for electricity, to meet the needs of gas-dependent industries and to make Iraq one of the leading countries that export gas," said Oil Minister Abdul-Karim Elaibi.
Both deals signed yesterday were snatched during Iraq's third energy bidding round last October that offered three gas fields. The third field was the 5.6 trillion-cubic foot Akkas field near the Syrian border in western Iraq. That deal was initialed with KOGAS last Wednesday and still must be approved by the Cabinet before it is finalized.
Iraq produces about 7,000 megawatts of electricity daily - about half its actual need. That includes about 1,000 megawatts imported from Iran and Turkey.
Last month, Iraq signed a tentative deal with Iran to import 25 million cubic meters of natural gas daily to feed two power plants.
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