Petrel to perform case study in Iraqi oil field
A four-person team from Petrel will undertake a seismic study of the area, basically to gain an understanding of what kind of oil capacity lies underground.
They will be accompanied by a team representing the Oil Exploration Company, an offshoot of the Iraqi Ministry of Oil.
The Merjan Block is a 300sq km area surrounding the Merjan Oil Field, which was discovered by the Ministry of Oil 22 years ago. It lies directly east of Block 6, one of Petrel's other oil field development interests in Iraq, and approximately 50km west of the city of Karbala.
Petrel has been present in Iraq since 1999 and was specifically offered the chance to carry out this latest study by the country's oil ministry.
It does not, however, mean that the Irish company will automatically gain the rights to drill at the site in the future. Its Block 6 site as with all projects begun in the pre-Iraqi war era has been frozen until the political running of the country gains a more coherent picture.
However, a Petrel spokesperson said that they would expect pre-war contracts to be honoured and the fact that the company has been approached to carry out initial studies at Merjan should benefit it greatly if a significant find is made.
The fact that Merjan offers a good chance of finding light sweet oil, which is easy to refine, and of broadening the company's interests in the region are the main reasons it is carrying out the case study.
Last month, Petrel was awarded the contract to develop Iraq's Subba & Luhais oil field by the Iraqi Ministry of Oil's project division. The aim is to increase oil volume at the site, which is close to the Kuwaiti border, from its current level of 50,000 barrels per day to 200,000 over a period of three years.
Exxon Mobil and Statoil are carrying out similar studies to Petrel's Merjan project, close to the town of Mosul.
