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APG replaces BP in Risheh gas exploration

By JT - Mar 23,2016 - Last updated at Mar 23,2016

AMMAN — The Cabinet on Wednesday granted gas exploration rights in Risheh field and eastern Safawi in the northeastern desert to APG International through a joint-production agreement between the company and the state-owned National Petroleum Company (NPC) and the Ministry of Energy and Mineral Resources.

APG, a specialised company in petroleum and gas exploration, is expected to increase gas production, especially in the Risheh field, in a way that enhances the government's approach of diversifying energy sources and increasing reliance on gas in several sectors to lower the energy bill and production costs.

Granting the exploration rights to APG comes in line with the government's plans to allow specialised companies to explore and utilise local energy resources, while not incur any financial dues under the agreement, the Jordan News Agency, Petra, reported.

Energy Minister Ibrahim Saif said that regarding the Risheh field, a joint-production agreement will be signed with APG if it succeeds in increasing production from its current daily level of 13 million cubic metres (mcm) to 50mcm a day. 

According to recent remarks by NPC Chairman Qutaiba Abu Qura, the company’s revenues from selling gas in 2015 reached JD6.1 million, compared with JD6.5 million the year before. 

In 2014, British Petroleum ended its gas exploration operation in Jordan after unsatisfactory results on its second well in the country.

Saif also said APG pledged to spend some $25 million in the first year of developing the Risheh field and increasing its production levels, Petra added.

He noted that once production levels reach 300mcm, an agreement will be signed to guarantee the company will retrieve the costs it has spent and to distribute revenues of the gas, which will be sold on the local market or used in electricity generation or industrial sectors.

 

As for the eastern Safawi agreement with the same company, Saif said it aims at exploring gas in the area, adding that the company should prepare a time schedule for the exploration process and acquaint NPC and the Energy Ministry with this schedule, according to Petra.

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