Irish oil company Petrel said Iraq “will pass” the new Iraqi Hydrocarbon Law this year and it expects the new rules to bring better terms when its $197 million Subba and Luhais development starts up in 2010.
In Iraq since 1999, Petrel has focused on its Block 6 assets in the Western Desert, all of which could be ratified under the new law. The company hopes for a production-sharing agreement for the 240,000-barrel-a-day Subba and Luhais field, where, as operator, Petrel has brought in ITOCHU of Japan as contractor.
Meanwhile, a geological review of the Merjan field has been submitted to “Iraqi” authorities and contains the work of Itochu.
Iraq could have the second largest proven oil resources in the world, at some 115 billion barrels. Production costs below $2 a barrel are probably the lowest in the world, company chairman John Teeling reminded in a statement.
“There are dozens of proven undeveloped oil discoveries each containing over 1 billion barrels,” Teeling wrote, adding, “The West Qurna oil field, with at least 16 billion barrels recoverable, is the best undeveloped oil discovery in the world.”
OilGas24
