Mansouriya gas project halted on unrest in northern Iraq

18 August 2014

Turkey/Kuwait/South Korea consortium pulls staff from Diyala province operations

The consortium of companies developing Iraq’s Mansouriya gas field in Diyala province has halted project activities due to growing instability in the north of Iraq.

Earlier this year, Turkish Petroleum Overseas (TPAO), Kuwait Energy and South Korea’s Kogas had been assessing bids for the engineering, procurement and construction (EPC) of the Mansouriya’s planned central processing facility (CPF), according to industry sources.

“With regard to Mansouriya, the consortium has arranged with Midland Oil Company to halt activities until the security situation in the vicinity improves,” Kuwait Energy said in a statement.

“Meanwhile, the joint venture partners continue to discuss strategy with respect to the development of the Mansouriya contract area going forward,” the company added.

Kuwait Energy said that its operations at the Siba and Block-9 contract areas in the Basra province in southeast Iraq were largely unaffected and work programmes remain on schedule.

The company owns a 22.5 per cent stake in the Mansouriya field, a 45 per cent share of the Siba field and 70 per cent of Block 9.

Kuwait Energy said there was no immediate threat to the Mansouriya operations, the company is prioritising the safety of its workforce and closely monitoring the situation.

The Mansouriya field holds an estimated 3.3 trillion cubic feet of gas, with the consortium developing facilities to increase production to a plateau of 320 million cubic feet a day (cf/d).

Several other oil development projects have been affected by the spread of Islamic State in Iraq and Syria (Isis) militants in northern Iraq since June. At least eight companies operating in Iraqi Kurdistan have announced a reduction in operations or the evacuation of staff from oil and gas fields.

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