Current Projects
Petrel has been continuously active in Iraq since 1999 and is now considered one of the most established players in the Iraqi oil industry. Petrel works only with the legitimate Iraqi authorities, especially the professional Ministry of Oil. We have always honoured the exclusive right of the Iraqi people and government to regulate their industry and conduct business with approved players.
Subba Luhais EPC
The Iraqi authorities awarded Petrel in 2005, after 6 years of hard work and effort, the contract to develop the Subba & Luhais oilfields located in Southern Iraq to a minimum capacity of 200,000 barrels of oil per day and 120 million cubic feet of associated gas. This $197 million development services contract (EPC) was the first contract awarded after the fall of Saddam in 2003.
The scope of the contract is to ensure that all design work, supplies and services are delivered during the 1st Quarter of 2008; this will enable all construction and Petrel’s commissioning activities to be complete for oil and gas production during 2009. We anticipate that we will also be supporting the Iraqi Ministry of Oil Project’s Company (SCOP) during the construction phases of the project. Our work is proceeding well, on budget and on schedule. Though political events complicate activity, the Subba & Luhais area is relatively calm and we have encountered no insuperable security problems.
Security risks are manageable in the south of Iraq. Subba & Luhais oil fields are located in the relatively calm region of southern Iraq north-west of Basra. We have experienced no difficulties with local people and expect to be able to continue working in the locality. The Iraqi authorities and community forces encourage our activities and are supportive. Professional support services, including security, are available from local people.
Site location is about ninety minutes by good roads from Basra, whose port facilities can also be supplemented by neighbouring Kuwait. This local infrastructure provides excellent staging points for transportation and deliveries and services to support our work program.
Support for the elected government in this area of Iraq is high. It does not share the security challenges of central Iraq or the legal complications of the Kurdish-speaking area of Iraq. The area is flat desert, with good road and pipeline infrastructure.
Merjan Technical Agreement
Petrel’s is please to be one of the companies involved in providing training and transfer of technology to the technical personnel of the Ministry of Oil. As part of these efforts, Petrel and the Iraqi Oil Ministry recently completed a technical study on the undeveloped Merjan oil field contained. The agreement was signed in Oct 2005 and was successfully completed in May 2007. The study involved seismic reprocessing, well log analysis, core analysis, stratigraphic work, mapping, estimation of reserves as well as drafting potential development plans and budgets. All technical analysis and experience gained has been transferred to the Iraqi Oil Ministry.