Iran Energy News Oil, Gas, Petrochemical and Energy Field Specialized Channel
Related Articles
Iraqi Oil Minister Thamir Ghadhban has said progress has been made on a multi-billion dollar infrastructure project in the south of the country that has been negotiated since 2015 with ExxonMobil and PetroChina. the China National Petroleum Corp subsidiary.
The Southern Iraq Integrated Project would directly add 400.000 barrels per day of oil production and 2 million bpd of export capacity. among other projects enhancing long-term expansion of the energy sector. which is targeting 8 million bpd of production capacity by 2025. the ministry said. S&.P Global Platts reported.
`I do not have expectations when it will be — a day. or a month — but I`m optimistic that we will reach a deal soon.` Ghadhban told reporters on the sidelines of an industry conference in Baghdad on Sunday.
`Today we have a meeting with them. with their negotiating party. If some of the issues are sorted out. then we will sign an initial agreement.`
Multiple officials close to the negotiations. as well as senior officials at oil companies operating in Iraq. have told Platts the final items to agree on are the structure and timing of payments to the contractors. Three officials close to the talks and two IOC officials all said they have been told to expect the deal will be signed in Q1 2019. with one official saying it could be as early as next month.
The details of the contract terms are unknown. as is percentage ownership of the venture that ExxonMobil and PetroChina will each hold.
The consortium would develop the Nahr Bin Umar and Ratawi fields from current combined output of 80.000 bpd to 500.000 bpd. The revenue from those projects would be used to fund repairs and other work on the country`s southern infrastructure. including optimizing export terminals in the Persian Gulf. from where Iraq can currently export close to 4 million bpd. although it has not achieved this for sustained periods.
