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NPC strives to increase Risheh field’s production capacity

By JT - Oct 24,2022 - Last updated at Oct 24,2022

AMMAN — The National Petroleum Company (NPC) is working in line with the strategic objectives of the Ministry of Energy and Mineral Resources' 2020-2030 strategic plan aimed at maximising production capacities and increasing the local contributions to the total energy mix to reach a level of 200 million cubic feet per day, increasing the production capacity of the Risheh field.

In a statement about the company's position regarding the closure of the Risheh power plant, the company said that the plan includes marketing natural gas to several buyers, instead of relying on a single buyer, to ensure the optimal use of gas and add value to the industrial sector, which suffers from high energy costs.

Natural gas has the lowest price compared with other oil derivatives. Furthermore, production costs in the Risheh field are low compared with neighbouring countries, the statement read, according to a statement made available to The Jordan Times.

Director General of the NPC Mohammed Khasawneh said that the marketing plan was set in stages based on the gradual escalation of the field’s production capability. 

Accordingly, the option to convert natural gas into liquefied or compressed gas to be transported by special tanks to various Jordanian industrial zones was adopted.

Since the beginning of 2020, the NPC has held discussions with a group of local investors who have expressed their wish to participate in this new Jordanian venture. A group of Jordanian companies have been qualified to build compression or gas liquefaction stations and specialised transport fleet, Khasawneh added.

To ensure the success and continuity of these projects, the company, in cooperation with the relevant official authorities, including the Ministry of Energy and the Energy and Minerals Sector Regulatory Authority, has developed a pricing mechanism to regulate the price of gas produced from the Risheh field for investors. 

Pricing will be based on international energy prices and will remain within price ceilings that protect buyers against global price hikes.

The mechanism took into account that prices motivate the industrial sector, the statement said, adding that the company has drawn a model agreement for the sale and purchase of gas in a manner that guarantees the rights of both parties and the continuity of the receipt and supply of gas.

As the volume of investments from these companies is expected to exceed $150 million, the company has briefed investors on its operations in the field, which include preparations for drilling-related programmes, in addition to geological and geophysical studies that cover an area of 3,000km.sq. that are being conducted by international companies.

These studies are meant to reassess the gas stock of the field to include new areas that have been drilled recently, which were not covered in previous studies.

The company has also signed the first gas sale and purchase agreements with Chlorine and Jordan Liquefied Gas, which is set to buy a total of 12 million cubic feet per day, the statement read, adding "it's expected that an agreement will be signed early next month with Unigaz to buy 8 million cubic feet, and there is another company that NPC expects to sign with before the end of the year”.

Despite the disruption of the Risha power plant, the relevant authorities have confirmed that quick arrangements are in the works to resume the plant’s operation, Khasawneh said.

The company also confirmed the continuation of the programmes and projects set forth in its annual strategic plan.

 

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