Norwegian Oil For Development In Iraq

6.6 I raq Project:

Institutional and technical assistance

Country facts:

Memorandum of Understanding with: Ministry of Oil, Iraq Goals and objectives: Institutional and technical governance assistance within the upstream and downstream petroleum sectors. Project period: September 2005-December 2007 Total budget: NOK 27.5 mill

Programme The programme consists of the following elements: 1. Data Management 2. Transfer of technology regarding increased oil recovery (IOR) 3. Petroleum sector training 4. Industry technology assistance and transfer of experience regarding development of local industry capacities 5. Policy Contact: Ministry of Oil, Iraq, [email protected] [email protected] NPD: Øystein Kristiansen, Project Manager [email protected]

Activities in 2006 Management/Joint Steering Committee 2006 represented a gradual build up of activities under the MoU. The progress in some areas have been slower than expected due to the need to use time to align the expectations as to the expected output from the cooperation. Travelling arrangements and visa applications procedures have also been challenging and the reason for some delays in activities. It is easy to understand that the current circumstances in Iraq make planning difficult. In general, the parties of the MoU are quite satisfied as to the 2006 achievements. During the period 8th May - 10th May technical meetings were arranged in Stavanger regarding the sub projects of the programme. The 2nd Joint Steering Committee (JSC) was arranged in Stavanger on the 11th May 2006. Technical meetings were also conducted on the 20th - 22nd November in preparation for the third JSC, which was arranged in Stavanger, November 23rd. The semi annual meetings with NORAD were arranged in Oslo on the 12th of May and on the 24th of November.

Data Management At the technical meetings in May a revised plan for 2006 was agreed upon with the main aims: • Joint working groups: 2 visits + 1 optional • Clean up of legacy data for an Iraqi oil field • Establishment of reporting guidelines for data • Focus on DM strategy in Iraq • Improvement of Schlumberger DM project 1st Joint working group, June 10.6 – 30.6 2006- 5 persons

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Official Name: Republic of Iraq Capital: Baghdad Chief of state: President Jalal Talabani; Vice Presidents Adil Abd Al-Mahdi and Tariq al-Hashimi; The president and vice presidents comprise the Presidency Council Head of Government: Prime Minister Nuri al-Maliki Population: 26 783 383 (2006) Petroleum sector, key figures: Average oil production: 1.84 mill bbl/day (2005); pre war production (in 2002) was 2.03 mill bbl/day Annual gas production: 17.6 bill m3 (2005) Organisation of the sector: Ministry of Oil: 6 Directorates: Studies & Planning Reservoir & Field Development Technical Economic & Finance Administration & Legal National Manufacturing 15 operating companies, among them: North Oil Company South Oil Company North Gas Company South Gas Company Oil Exploration Company Iraq Drilling Company Oil Projects Co Other companies for refining, transport and marketing

6.6 Content: • general introduction to Data Management in NPD, Statoil and Hydro • management of national data centre (Schlumberger – Sinas) • handling of seismic data and clean up of legacy data (Statoil) • handling of well log data and clean up of legacy data (Hydro)

Joint working groups

Data – Pilot Field Clean Up

Planning for the third joint working group

Two joint work periods with Iraqi (3+3) participants and Norwegian experts were arranged in NPD’s offices, Stavanger in May and June. The aim was briefly to assess the status and drive mechanisms of the 6 fields based on available data and simple working tools. Modern work processes including multidisciplinary open discussions on results and uncertainties were incorporated. Preliminary results have been discussed with MoO.

Aims: • To examine data types in detail, identify problems and propose solutions • Establish workflows for seismic and well data and QC routines • Loading of pilot field data into OEC database from Schlumberger office in Cairo • Cost estimate for total clean up of pilot field data • Set up guidelines for the handling of legacy data from other fields in Iraq

Discussions on the IOR/EOR potential of the fields and short and long term needs which started in the first two groups will continue and be finalized during a third joint working period. This was first planned for August, and then postponed several times. On 30. December MoO confirmed their participation with 10 participants in a workshop to be held in Amman 14. – 18. January 2007.

Additional work by the Norwegian group Awaiting and preparing for the next joint work the Norwegian group worked on further field assessments and input to a preliminary draft report and informative presentation material.

A significant amount of pilot field well data has now been cleaned up by Hampton Data, for use in final QC and preparation for data loading (see plans 2007). Work during the planned second joint working group, delayed until early 2007, will define the cost of the total data clean up. It is hoped that much of the planned seismic data clean up can be done by Iraqis themselves during secondments.

Reporting from Phase 1

IOR Project

Training

In the project IOR has the following definition: “IOR is the planning and execution of measures intended to increase or accelerate oil recovery from a field in a profitable manner compared to current plans (including EOR)”.

The report from the project’s Phase 1 will be finalized shortly after the third joint working group has been arranged, early 2007. Recommendations for further work will be part of the report from Phase 1.

The major activity has been the planning of the 18 week training programme for staff from MoO. The draft programme has been completed. A group of 19 participants arrived in Cambridge on the 17th of November for commencement of English training with the Bell Institute. Due to practical challenges in getting visa and transport to the UK, 6 weeks training was completed before the group returned to Iraq on 22nd December. Additional English training will be provided for during the training in Norway.

Technical Sub Committee (TSC) meetings Three meetings were held, in Stavanger (May), in Amman (September) and in Stavanger (November).

Scope of work A general IOR strategy was originally planned. The MoO decision to include only 7 fields in the study led to some redefining of Phase 1 scope of work. However, the project’s overall objectives have not been altered.

The plan is now to commence the main training course on the 16th of January 2007 for approximately 11 weeks until the end of March.

It has been a serious challenge in the project to gain a mutual understanding of the expected project results as well as access to relevant data for the planned quick look field analysis.

A study tour regarding state of the art technologies within particular fields is designed but has been deferred to 2007.

Industrial cooperation

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6.6 Phase 2 The phase 2 work will be defined when the Phase 1 report is completed. It is possible that the work will focus on development of some regulatory tools and assistance in commercialization of IOR projects. NPD will at this stage terminate the cooperation with Statoil and Hydro regarding the IOR work.

Plans 2007 Management The 4th JSC is planned for week 27 in July in Norway and the 5th JSC for November. An important matter for the 4th JSC will be whether Iraq Ministry of Oil will like to propose a new phase of the cooperation programme for 2008 onwards. Data Management Workshop on Data legislation, guidelines and procedures Date: Q1 2007 To establish reporting legislation (guidelines) for E&P data based on accepted industry standards and conventions. Location: Stavanger, NPD Data clean up and QC – On the job training. Seismic and well data Date: Q1 2007 Location: Stavanger and Bergen option Amman. An important task will be the QC and preparation of the pilot field data for loading to the MoO database.

Training Training Need Assessment (TNA) Workshop A TNA workshop is planned for early 2007 in UAE. MSc programmes and other training needed will be provided within the remaining funds in the programme. Technical programmes of some duration and distance learning are also options to be examined. Petrad is coordinating the training part of the programme. Vocational Training Vocational training options are available through Rogaland Kurs og Kompetansesenter (RKK). High Level Policy Work shop A 3-4 days High Level Policy Workshop proposal for senior managers has been developed by Petrad in cooperation with MPE and NPD. Petrad will assist MPE and NPD in arranging the Workshop. The final plans and timing are not yet in place, but 2007 implementation is most likely.

Data Loading to MoO database Date: Q 2 2007(to be decided) Location: Cairo and Baghdad

IOR

Industrial Cooperation A programme for a1 week R&D visit to Norway has been developed by INTSOK / SCANDPOWER. (INTSOK is coordinating the technology transfer part of the programme ).

Joint Workshop(s) A joint workshop on IOR strategy work will be carried out in Amman early 2007 and if required a second workshop will be conducted. Phase 1 Report The phase 1 report is planned for 1st quarter 2007.

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