1

IRAQI GAS DEVELOPMENT PLANS AN OVERVIEW

SABAH H. AL-JOWHARMANGER OF GAS DEPARTMENT

PLANNING DIRECTORATE, MINISTRY OF OIL - IRAQ

This views expressed in this presentation are those of it’s author and do not necessarily represent the policy or views of the Ministry of Oil of the Republic of Iraq

2

• Introduction

• Gas Reserves

• Gas Utilisation Strategy

• Short Term Plan

• Rehabilitation to Pre-War Capacities

• Medium Term Plan

• Utilisation of Associated Gas from New Projects

• Early Production for Power Generation

• Long Term Plan

• Full Development of Oil & Gas Fields

• Surplus Gas Utilisation

• Conclusions

Main Topics

3

8

OIL FIELDS

GAS FIELDS

MansuriaMansuria

Jeria pikaJeria pika

KashmKashm Al Al ahmerahmer

KormoreKormore

ChemchemalChemchemal

AkkasAkkas

SibaSiba

15%

69%16%

Associated Gas

Gas Cap

Free Gas

Proven Gas Reserves is around 3150 BCM

THE ETERNAL FIRE AT KIRKUKTHE ETERNAL FIRE AT KIRKUK

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• Gas Master Plan

• Minimise Gas Flaring

• Rehabilitation of existing gas plants

• Construction new gas utilization projects

• Maximizing liquid recovery from natural gas to enable LPG export

• Substitution of natural gas for power generation, instead of crude oil & oil products

• Surplus Gas Utilisation

• Conversion to: GTL , Chemicals & Fertilizer

• Gas Storage in depleted reservoirs

• Gas Export

Gas Utilization Strategy

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Pre - War Design Capacities

Gas Processing Plants

NORTH GAS PLANT (535 MMSCF/D)NORTH GAS PLANT (535 MMSCF/D)

• DRY GAS ( 400 MMSCF/D)DRY GAS ( 400 MMSCF/D)

• LPG (3340 T/D)LPG (3340 T/D)

• N-GASOLINE ( 1050 T/D)N-GASOLINE ( 1050 T/D)

SOUTH GAS (1050 MMSCF/D)SOUTH GAS (1050 MMSCF/D)

• DRY GAS (760 MMSCF/D)DRY GAS (760 MMSCF/D)

• LPG (12100 T/D)LPG (12100 T/D)

• N-GASOLINE (4200 T/D)N-GASOLINE (4200 T/D)

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NATURAL GAS PRODUCTION & UTILIZATIONMILLION CUM/Y

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

YEAR

MIL

LIO

N C

UM

/Y

PRODUCTION UTILIZATION

Pre - War Gas Production & Utilisation

7

0

1000

2000

3000

4000

5000

6000

7000

8000

MIL

LIO

N C

UM

/Y

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

YEAR

DRY GAS CONSUMPTION

PETROLEUM INDUSTRY ELECTRIC

Pre - War Dry Gas Sector Consumption

8

NOC PRODUCED, 228

NOC UTILIZED, 191

FREE, 174

SOC PRODUCED, 936

SOC UTILIZED, 279

FLARED, 694

• Natural Gas Daily Production = 1164 mmscf/d

• Natural Gas Daily Flare = 694 mmscf/d (~60 %)

Present Status – 2005 (in mmscf/d)

9

Requirements to Restore Capacities

• Rehabilitation of the following:

• Gas Gathering System (Gas Compressor Stations) at

• Southern Field Region (Rumaila)

• Kirkuk Area

• Second Train in North Gas Plant

• Refrigerating Unit at NGL Plant North Rumaila

• The Two NGL Trains at Khor Al Zubair

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LEGENDDRY GAS P/LLPG P/LPROPOSED NEW NGL/LPGRAW GAS P/LTOWNEXISTING GAS PLANT

Gas Production -

Present

AVERAGE PRODUCTION OF LPG 0.7 MTPA

IMPORT ABOUT 1.1 MTPA

• Rehabilitation of gas facilities and gas net work to pre-war status

• LPG demand ~ (1.8 MTPA)

• LPG imported for the domestic needs

NGL 2,3LPG 3

AMMARA

BASRAH

SIBA

MANSURIAJERA PIKANAU DUMANTEL GHAZALNAFT KHANA

KASHM AHMERQUMERGILABAT

KIRKUKBAI HASSANKHABAZJAMBURAJILKORMORCHEMCHEMALHAMRIN

00000

GHARRAFRAFIDAINNASRIYA

BUZURGANFAUQIABU GHIRAB

MAJNOONNAHR UMER

0

00

12810822

105172

000

101018

HALFAYAH 0

2518

BAGHDAD

0 GAS

000

0 GAS

AHDAB 0

KUT

AKKAS 0

N.RUMAILAW.QURNATUBARATAWILUHAISSUBBA

S.RUMAILAZUBAIR

198185

00

360

390123

932 GAS

LPG EXPORT TERMENAL

MOSUL KIRKUKNGL+LPG

SULAYMANIYAH

258 GAS0 ADDITIONAL

ERBIL

ANBAR

NGL 1

NGL +LPG

direct injected in network + power

generation

existing capacity 350

DIYALA

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• Utilisation of Mishrif Sour Gas (~65 mmscf/d) from N Rumaila

• Utilisation of (~ 200 mmscf/d) associated gas from Zubair Field, to be implemented in two phases

• Utilisation of West Qurna associated gas (~150 mmscf/d)

Medium Term Plan

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• After Rehab of existing natural gas facilities, and construction the new gas projects

• Construct new Fast Track Power Generation Projects (total 940 MW) using:

• Associated Flared Gas

• Partial Development of Gas Fields

Medium Term

NGL 2,3LPG 3

POWER STATION

AMMARA

BASRAH

SIBA

MANSURIAJERA PIKANAU DUMANTEL GHAZALNAFT KHANA

KASHM AHMERQUMERGILABAT

KIRKUKBAI HASSANKHABAZJAMBURAJILKORMORCHEMCHEMALHAMRIN

500000

GHARRAFRAFEDINNASRIYA

BUZURGANFAUQIABU GHIRAB

MAJNOONNAHR UMER

0

00

0 GAS

12810822

105172

0500

101018

HALFAYAH 0

2518

BAGHDAD

0 GAS

000

0 GAS

AHDAB 0

KUT

AKKAS 50

N.RUMAILAW.QURNAHTUBARATAWILUHAISSUBBA

S.RUMAILAZUBAIR

198185

00

360

390123

932 GAS

LPG EXPORT TERMENAL

MOSUL KIRKUKNGL+LPG

SULAYMANIYAH

450 GAS0 ADDITIONAL

ERBIL

ANBAR

NGL 1

NGL +LPG

direct injected in network + power generation

existing capacity 1050

LPG 2.6MTA

LPG 1.26 MTA

TOTAL LPG 3.8 MTA

160 MW

180MW

EXPORT LPG 2 MTA

200 MW

200 MW

200 MW

DIYALA

LEGENDDRY GAS P/LLPG P/LPROPOSED NEW NGL/LPGRAW GAS P/LTOWNEXISTING GAS PLANT

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Siba

Chemchemal

Mansuriya

Akkas

Jeria pika

Long Term Plan

• Associated Gas Utilisation

• Gas Fields Development

• Power Generation

• Development of New Oil Fields Leading to Increased Associated Gas

• Marketing of gas products, LPG, Natural Gasoline

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• Discovered Fields 73 Fields

• Present Producing Fields 24 Fields

• Present Infrastructure Capacity ~ 3.5 mm bbl/day

• Future Plan to increase production capacity to 6 mm bbl/day:

• First Stage: Increase production from 3.5 to 4.0 mm bbl/day

• Development of Producing Reservoirs,

• Partial Development of Discovered but Undeveloped Fields

• Second Stage: Addition of 2 mm bbl/day through Cooperation with International Companies According to the Ministry Frame Work Agreement Models (Production Sharing, Service Contracts etc.)

Crude Oil Production Plan

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Associated Gas Production - 6 mm bbl/day Plan

0

1000

2000

3000

4000

5000

6000

1 2 3 4 5 6 7 8 9 10

YEARS

GA

S P

RO

DU

CTIO

N C

AP

AC

ITY

M

msc

f/d

ay

PRODUCING FIRST STAGE SECOND STAGE

Associated Gas Produced from Different Crude Type

0

1000

2000

3000

4000

5000

6000

1 2 3 4 5 6 7 8 9 10YEAR

LIGHT REGULAR MEDIUM HEAVY

GA

S P

RO

DU

CTIO

N C

AP

AC

ITY

Mm

scf/

day

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Gas Production from Northern Gas Fields(incl Akkas)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1 2 3 4 5 6 7 8 9 10YEAR

Mm

scf/

day

JAMBUR AJIL KORMOR MANSURIA JARIA PIKA KASHM ALAHMR CHEMCHEMAL AKKAS

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• Expected Natural Gas

production, associated gas at 6 mmbbl/d from crude oil and free gas from Gas fields

• Expected LPG production

LPG 5.55 MTANGL 2,3LPG 3

NGL +LPG

NGL +LPG

NGL +LPG

POWER STATION

AMMARA

BASRAH

SIBA

MANSURIAJERA PIKANAU DUMANTEL GHAZALNAFT KHANA

KASHM AHMERQUMARGILABAT

KIRKUKBAI HASSANKHABAZJAMBURAJILKORMORCHEMCHEMALHAMRIN

300100175755

GHARRAFRAFIDAINNASRIYA

BUZURGANFAUQIABU GHIRAB

MAJNOONNAHR UMER

211

74192

1127 GAS

1151162278

17220020018

15.215.222.8

HALFAYAH 164

577940

257.2GAS

1517 GAS

NGL-LPG

BAGHDAD

125 GAS

12472

190

386 GAS

AHDAB 45

KUT POWER

AKKAS 100

N.RUMAILAW.QURNATUBARATAWILUHAISSUBBA

S.RUMAILAZUBAIR

3824922928430

22.8

448170

1858 GAS

LPG EXPORT TERMENAL

MOSUL

MANSURIANGL

MISANNGL

KIRKUKNGL+LPG

SULAYMANIYAH

530 GAS400 ADDITIONAL

ERBIL

ANBAR

NGL 1

NGL +LPG

LPG 2.6 MTA

LPG 3.15 MTA

LPG 0.7 MTA

LPG 1.08 MTA

LPG 4.24 MTA

LPG 5 MTA

Total LPG Production Potential

Low Case = 13 MTPA

High Case = 17.3 MTPA

Maximum Local Consumption = 4 MTPA

(2010 - 2015)

LPG Export Potential

Base Case = 9 MTPA

High Case = 13.3 MTPA

Longer Term

LEGENDDRY GAS P/LLPG P/LPROPOSED NEW NGL/LPGRAW GAS P/LTOWNEXISTING GAS PLANT

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Power Generation Capacity & Demand• Pre 1990 Installed Power Generation Capacity 8,500 MW

• Pre – War Power Generation Capacity ~ 5,000 MW

• Present Status:

• Power Stations operate at < 60% of Capacity

• All Existing Power Plant Require refurbishment & Overhaul to return to Pre 1990 Levels

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

MW

2005 2006 2007 2008 2009 2010

YEAR

Forecast Summer Peak Load Power Demand

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

MW

2005 2006 2007 2008 2009 2010

YEAR

Forecast Summer Peak Load Power Demand

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Power Generation Fuel Forecast (to 2010)

Associated Gas Production

(at 3.5- 4 mmbbld)

~ 2000 mmscf/day

Development of Non Associated Gas Fields

~ 1925 mmscf/day

ELECTRICAL POWER DEMAND

17 000 MW

Fuel Oil Produced at Refinery

260,000 bbl/day

8400 MW

6600

MW

8000 MW

Crude Oil

50,000 bbl/day

1300 MW

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Gas Fields Development Projects

Fields

Full Development Fast Track Project

Estimated Reserves

(Bcm)

Production Potential

(mmscf/day)

Producing Wells

Production Capacity

(mmscf/day)

Producing Wells

Existing Drilling

Mansuria 90 – 110 300 15 50 4 0

Kormor 50 – 70 200 6 0 0 0

Jeria Pika 25 – 45 100 6 50 1 2

Khashm Ahmer

40 – 60 200 16 50 1 3

Chemchemal 50 – 70 200 12 (H) 50 1 3 (H)

Akkas 120 – 130 400 14 50 6 0

Siba 20 – 35 125 10 0 0 0

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Surplus Gas

1400 – 2800 mmscf/day

Associated Gas

5000 mmscf/day

Free Gas

1925 mmscf/day

Estimated Consumption

~ 4100 mmscf/day

~ 1425 mmscf/day Gas Injection

(if deemed necessary, TBC)

GTL Petrochemicals

FertiliserExport

Gas Balance Forecast 6 mmbbl/day Crude

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• Iraq needs an Integrated Energy Masterplan in addition to Gas Masterplan

• Reducing Gas Flaring for Power Generation

• Maximising Liquid Recovery to enable LPG / Condensate Export

• Gas Fields Development in Two stages,

• Early Production Projects for power generation and localised consumption

• Full Development Jointly with International Companies

• Techno-Economic Studies to evaluate the Surplus Gas for:

• Further Domestic Needs,

• Petrochemical, GTL, Fertiliser,

• Export

Conclusion