Iraq’s oil ministry said it is planning to develop the gas field of Mansuriya via local firms after international oil and gas companies delayed and failed to complete a development license.
Oil Minister Jabbar Al Luaibi has instructed national companies to set up a quick development of the field in the Diyala region, an oil ministry statement said.
“The ministry will not suspect to send the contracts that are lax by foreign companies to national companies that have the experience and the capability to execute similar work at a lower cost,” he said.
Iraq, in 2011, contracted a consortium led by Turkish government-owned TPAO and including South Korea’s Kogas and the Kuwait Energy Company to develop the field in the Diyala Region. Late in 2017, Luaibi asked TPAO to resume work after it stops operations in 2014 due to security concerns.
The construction target is set at 100 million standard cm/d within a year, the ministry said, adding that the gas production from the field will be consumed largely to fuel the Mansuriya gas station to produce electricity.
Energy shortage in Iraq, which experiences some of the hottest summer days in the zone, helped spark protests in the south of the country by locals demanded jobs and speaking out over poor government services.
Additionally, the oil minister also directed Iraq’s Dhi Qar Oil Co. and Iraq Drilling Co to develop the Nassiriya oilfield in the south of the country, a separate statement said.
The ministry of oil has budgeted $140 million to pick up production from Nassiriya, which has more than 4 billion barrels in reserves, from the current 90,000 barrels per day to 200,000 barrels per day in a year’s time by drilling 20 new wells, the minister added.